Owning your first home is one of life’s major milestones, and it may happen sooner than you think. The Federal Government will be introducing a First Home Loan Deposit Scheme on 1 January 2020. Now you can add buying your first home to your list of new year’s resolutions.

What are the benefits?

• You only need to save a 5% deposit instead of a 20% deposit.
• You won’t need to pay lenders mortgage insurance (LMI), which provides cover for your lender if you can’t repay your mortgage. You would usually need to pay LMI when borrowing more than 80% of a property’s value.

What makes you eligible?

• You are a first home buyer.
• You do not own any investment properties.
• You earn $125,000 per annum or less ($200,000 for a couple).

What do I need to know?

• The scheme is limited to 10,000 borrowers.
• The value of eligible homes will vary by region.
• The Scheme will be operated by the National Housing Finance and Investment Corporation (NHFIC).

Source: Finder

The NHFIC will provide further information about the scheme and updates on its implementation in the coming months. They will be consulting with financial institutions and other key stakeholders leading up to the commencement of the scheme. Notifications will be posted on their Twitter and LinkedIn accounts. We will also keep a close watch on developments, so please connect with us so we can inform you as information becomes available.

At FutureNow Finance, we can help you to plan towards buying your first home. Contact us today if you’d like to discuss your options. Call 1300 013 730 or email hello@futurenowfinance.com.au.

If you know of anyone who dreams of buying their first home, please share this article with them. You could help to take them one step closer to making it happen in 2020!