First home buyers need to move fast

The First Home Loan Deposit Scheme, which started on 1 January, is capped at 10,000 places per financial year. The first allocation of places have already been claimed; but 7,000 places will become available on 1 February.

Here’s how it works:

1. 1. The government will guarantee your loan if you have a deposit of 5-19%
2. 2. That means you won’t have to pay LMI (lender’s mortgage insurance)

Eligibility rules apply:

• You must be a first home buyer
• You must earn under $125,000 for singles and $200,000 for couples

Also, you must buy a property that costs less than the price threshold listed in the chart above.