New data released by the Federal Government has shown that first home buyers are now able to enter the market four years earlier than previously planned.
The data shows that one-eighth of all first home buyers who purchased a home between March and June 2020 did so using the First Home Loan Deposit Scheme.
The first home loan deposit scheme was launched on January 1 2020 by the Federal Government to help first home buyers secure a home loan with a deposit as little as 5% while avoiding the high cost of Lenders Mortgage Insurance (LMI).
The National Housing Finance and Investment Corporation recently released its first research report on the First Home Loan Deposit Scheme, which shows its success in the first six months of operation.
At this stage, only 10,000 places are available each financial year, with places nearing capacity already for this financial year. It’s recommended to contact your mortgage broker to see if you’re eligible immediately to avoid missing out.
Key insights from the first six months of the Scheme include:
- 1 in 8 of all first home buyers was eligible for the Scheme
- Teachers and Nurses were the largest groups of workers to access the Scheme
- Major cities attracted 62.3 percent of buyers under the Scheme while 37.7 percent purchased in regional areas.
- Almost 70 percent of buyers using the Scheme purchased a detached house, with 25 percent buying an apartment and 5 percent purchasing a townhouse.
- The median purchase price for houses was $385,000 compared with $475,000 for apartments (most apartments purchased were in capital cities).
- Half of the Scheme guarantees were issued to single buyers with taxable incomes of $60,000 to $80,000. Couples were concentrated in the $90,000 to $125,000 earnings bracket.
To make sure you can get access to the scheme contact Sunshine Coast Financial Solutions today.
You can also visit the Government’s frequently asked questions page. However, your financial advisor will be able to answer all these and more at your first meeting.