First-home buyers have been snapping up properties with less than $30,000 saved, under government scheme.
Currently the Government offers 10,000 places in the scheme each financial year, on a first-come-first-served basis.
The scheme commenced at the start of the year, and within its first six weeks more than half of the 10,000 places in the scheme had been filled.
The Federal Government will now add an additional 10,000 places to the scheme that is designed to help people purchase property with a deposit of five per cent, with the Government guaranteeing loans up to a certain price threshold.
However not without its critics, experts have warned of the risk of more debt.
Under the extension to the scheme, price caps will also be raised, reflecting the fact new builds are generally more expensive.
Price caps for the scheme will be lifted, allowing Sydney buyers to purchase a $950,000 home with a deposit of only $47,500.
The previous limit was $700,000 and buyers were not restricted to new builds.
Melbourne’s cap will lift to $850,000 from $600,000, while Brisbane will lift to $650,000 from $475,000.
To be eligible, home buyers must work with one of 27 participating lenders.
AM I ELIGIBLE FOR THE FIRST HOME LOAN DEPOSIT SCHEME?
You need to be able to provide documentation of your eligibility to secure your position.
Eligibility criteria includes:
All applicants must be First Home Buyers and must not have owned or had an interest in residential property (whether as an investment or owner occupied).
Individual applicants must have earned less than $125,000 or $200,000 for couples in the last financial year (as evidenced on your ATO Notice of Assessment).
Couples must be married or in a de facto relationship. Other persons buying together, including friends, siblings or a parent/child are not eligible.
All applicants must be at least 18 years of age and have a valid Medicare card.
All applicants must be Australian citizens with either a valid Australian passport or proof of Australian citizenship. Permanent residents are not eligible.
Applicants must have a deposit of between 5% and 20% of the property’s value.
Your purchased property must be an acceptable property type and within the property price threshold for the suburb and postcode.
*Information within in this publication has been sourced from Domain.com.au