This is based on five percent of a $700,000 three-bedroom home. It will be even cheaper for a $605, 000 pre-loved in Richmond.
The scheme took effect on January 1 for eligible 10,000 first-time homebuyers whose annual incomes range from $125, 000 for singles and $250,000 for couples allowing them to put in as little as five percent deposit to buy a home with a capped price of $700, 000 in NSW.
A further 10,000 places will be made available from July 1 this year following a resounding response from at least 6000 first-time home buyers opening the possibility that the Federal Government could extend it further.
“We look forward to more Australians taking advantage of this Scheme. This will help Australians buy a home years earlier,” Housing Minister and Assistant Treasurer Michael Sukkar said in a media statement.
The five percent deposit has sparked enthusiasm from those who want “to get into the merry-go-round of owning a home” and they are tapping into apartments or townhouses within the $700,000 price cap in Riverstone and surrounding suburbs in the northwest, said Julie Grigg of Response Real Estate.
Riverstone is one of the fast-growing suburbs northwest of Sydney, and it is located a few kilometres from the Northwest Metro Rail Line that opened last year to ease the public transport needs of the Hills Shire’s 158,000 plus residents.
Windsor real estate agent, Rachael Goldsworthy said the scheme was a saving grace for millennial buyers in their 30s, as well those over 40s, who are getting a hand from the Federal Government so they can buy their first home.
“With interest rates the lowest level we have seen in over six decades, this scheme is a good opportunity for first home buyers to enter the market before the prices continue to increase,” said Ms Goldsworthy.
“The feedback I receive from younger first home buyers was that affordability for them in the past, in particular for millennials, was a struggle.
“They worry they will never be able to afford their first home, with high living expenses and added pressure of earning a degree then graduating university with a large HECS debt and other expenses, they have indicated it slows the real estate journey”.
While two of the big banks are guaranteeing the loans under the Scheme, Mr Sukkar said, another 25 non-major lenders have agreed to offer loans to half the number of first-time home buyers allocated every financial year legislated under the National Housing Finance and Investment Corporation.
“The Scheme has been designed to ensure strong representation of smaller lenders,” Mr Sukkar said.
“This will promote competition between the major and non-major lenders, and ensure the Scheme has broad geographic reach, including in regional and remote communities.”
For more details about the First Home Loan Deposit Scheme, visit https://www.nhfic.gov.au/what-we-do/fhlds/
