When it comes to applying for loans, it is very much important to acknowledge that there is a loan that is known with the name of First Home Loan Deposit Scheme has been designed to help those who come under the eligibility of the property market sooner. But do you know how it really works? And what are the requirements you need to consider to get this loan and if you are eligible how you can apply? Well, through this article, we will explore everything you need to know about the First Home Loan Deposit scheme that is very much important to invest.
Are you eligible for the First Home Loan Deposit scheme?
The first Home Loan Deposit scheme began on 1 Jan 2020. It allows the eligible first home buyers to purchase the property with a five percent deposit and without any need to take the lender’s mortgage insurance. According to the Accounts NextGen, the scheme doesn’t offer cash payment, you can use it in the conjunction with any other govt grants, schemes, waivers, and more.
First Home loan Deposit scheme new home guarantee
As a part of the federal budget set for 2020-21, the Australian govt has committed an additional 10,000 First Home loan Deposit scheme places for the 2020-21 financial year which is specifically eligible for the first home buyers purchasing new homes. There is a New Home Guarantee according to the Accounts NextGenand it has been established to support the Government’s economic stimulus set norms and hence can create jobs in the residential construction sector.
How to apply for the First Home loan deposit scheme?
The NAB ad CBA are two of the major lenders when it comes to the First Home loan deposit scheme. These two are selected to participate with a total allocation of 5000 grants that are shared between both parties. This clearly means that you can jump in and apply for a place in the scheme with the related estate norms that are described by Accounts NextGen.
Some of the listed lenders allocated the 5000 places
- Bank Australia
- Australian Military Bank
- Bendigo Bank
- Auswide Bank
- Community First Credit Union
- Beyond Bank Australia
- Bank First
- Defence Bank
- Bank of us
- Gateway Bank
- G&C Mutual Bank
- People’s Choice Credit Union
- P&N Bank
- Queensland Country Credit Union
- Indigenous Business Australia
- MyState Bank
- Police Bank (including the Border Bank and Bank of Heritage Isle)
- Sydney Mutual Bank and Endeavour Mutual Bank (divisions of Australian Mutual Bank Ltd)
- The Mutual Bank
- WAW Credit Union
- Teachers Mutual Bank Limited (including Firefighters Mutual Bank, Health Professionals Bank, Teachers Mutual Bank, and UniBank)
- Regional Australia Bank
Point to remember:Accounts NextGen explains that in order to apply to the scheme, you will be subjected to follow the eligibility criteria. You just need to provide certain documentation of the eligibility to secure the position.
What is the Eligibility criteria for First Home Buyers?
- All the applicants must be eligible for getting into the First Home Loan Deposit scheme and must not have interest in the residential property. The individual applicants have earned less than $1,25,000 or the $2,00,000 for the couples in the last financial year.
- The couples must be married or in a de facto relationship. Other persons buying together that are eligible.
- All the applicants must be at least 18 years of age and have valid medicare care.
- Applicants must have a deposit of between 5% and 20% of the property’s value.
- All the applicants must be Australian citizens with a valid Australian passport
- Your purchased property price must be within the property prices threshold according to the Accounts NextGen.
- You can also check the property price cap for the area of the NHFIC online tool.
In a conclusive viewpoint:
By concluding this article we now hope that this piece of information has helped when you are planning to invest your hard-earned money in the First Home Loan Deposit scheme.