More than 5700 Australians have signed up for the First Home Loan Deposit Scheme. According to the financial comparison site Finder.com.au the scheme means, that if you have saved 5 per cent of the purchase price of your property, the government will guarantee the remaining 15 per cent of the deposit.
While you will still need to borrow 95 per cent, you will be able to avoid LMI, which is expensive, often totalling more than $10,000.
All 5000 positions for the First Home Loan Deposit Scheme that were available with the National Australia Bank and Commonwealth Bank have already been reserved, 2000 of which were only released in early February.
First-home buyers will need to turn to smaller lenders quickly to use the new government loan scheme to get onto the property ladder in the coming months, with all the places available from the big banks already taken up.
If you’re a first home buyer it’s a great time to be looking at getting into the market. Speak to your banker and your real estate agent to discuss your options.
“Now is a good time to speak to the experts about what options you have. The market is in a stronger position, and there is plenty of stock available, so it’s an ideal time to consider your first move into property”.