First Home Loan Deposit Scheme to Increase Price Caps

More first home buyers can get into the property market with a smaller deposit and higher price point thanks to government guarantees. The changes have been announced with newly increased price caps for 30,000 new spots across three schemes. Read on to find out how you can access the schemes and how it can help you secure your first home sooner.

What are the new price caps in the First Home Loan Deposit Scheme?

Under the First Home Loan Deposit Scheme, 10,000 more first home buyers on the Sunshine Coast could now purchase a property worth up to $600,000 with a deposit as low as 5 per cent. Previously the highest price cap for Sunshine Coast was $475,000.

The federal government’s loan deposit scheme will also have 10,000 extra spots under its New Home Guarantee, which will be capped at $650,000 for Sunshine Coast new home buyers.

Single parents will be able to access the new Family Home Guarantee and can purchase a Sunshine Coast property up to $600,000 with a 2 per cent deposit with the first of the 10,000 spots rolling out now and over the next four financial years.

How can first home buyers access government schemes?

Seeing an experienced mortgage broker is your first step to access one of the available schemes (or if you are eligible for any other current benefits!). Only certain lenders are authorised participants in the schemes and your mortgage broker can explain which ones are available and what will suit you best for your personal circumstances.

Once you have identified an eligible home loan lender through a mortgage broker, you will be able to access a first home buyer’s loan with as little as 5 per cent deposit. The loan will be guaranteed by the federal government.

Key criteria will apply for a successful loan application including:

  • applying as an individual or couple (married / de facto)
  • being Australian citizen(s) at the time you enter the loan
  • being at least 18 years of age
  • earning up to $125,000 for individuals or $200,000 for couples
  • you must intend to be owner-occupiers of the purchased property
  • you must be first home buyers who have not previously owned, or had an interest in, a property in Australia

Eligible properties will be a “residential property” and can include:

  • an existing house, townhouse or apartment
  • a house and land package
  • land and a separate contract to build a home
  • an off-the-plan apartment or townhouse

What other government benefits are available to first home buyers on the Sunshine Coast?

  1. Queensland First Home Buyers Grant – $15,000 grant for when you are building a new home or buying a brand new home
  2. Queensland Stamp Duty Rebate/Concession – up to $8,750 when you are buying an established or newly built home priced at $550,000 or less. The concession is also available when you are buying a block of vacant land for less than $400,000 where you can get a rebate of up to $7,175.

Many first home buyers may be feeling like their first home is out of reach with real estate market news across the country showing skyrocketing prices, however, help is available to eligible first home buyers through a number of federal and state government schemes.

Talk to us today to find out what you are eligible for and how you can get into your first home sooner this financial year.

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