How a first home buyer can get into the market sooner
- Posted by: Josie Robb
- Categories: First Home Buyer (FHB), Property Finance
Almost 33,000 Australians bought their first home, four years sooner, thanks to two government schemes.
The governments figures on the popular First Home Loan Deposit Scheme (FHLDS) and New Home Guarantee (NHG) initiatives show many first home buyers got a leg up into the property market much sooner than they ever dreamed.
The FHLDS allows eligible FHB’s with only a 5% deposit (rather than the typical 20% deposit) to purchase a property without forking out for lenders mortgage insurance (LMI).
The NHG scheme is very similar but is only for new builds such as a house and land purchase or a land purchase with a contract to build.
Another key difference is that the NHG property price caps are higher to account for the extra expenses associated with building a new home.
According to the latest stats, 58% of all buyers under the schemes are aged under 30-years-old with NSW (11,000 residents) and Queensland (9,000 residents) making up nearly two-thirds of the scheme’s recipients.
And it turns out that most first home buyers who secured a spot in one of the schemes used a mortgage broker (56%).
But for the NHG scheme specifically, brokers originated the vast majority of government guarantees (72%).
We love a feel-good news story around here, that’s why we had to share, plus hearing that so many first home buyers makes us feel pretty warm and fuzzy.
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