Good news for first home buyers! The federal government has reissued 1,800 unused spots from the first round of the first home loan deposit scheme (FHLDS).
The FHLDS helps eligible first home buyers break into the property market faster as the government guarantees up to 15% of mortgage. This means you can secure a home loan with a deposit of as little as 5% without having to pay lender’s mortgage insurance (LMI).
LMI is a one-off charge added to your home loan. It protects the lender should you subsequently default on your mortgage.
The first round of the scheme was highly popular when it launched in January 2021, with 3,000 of the 10,000 places snapped up within the first two weeks alone. A further 10,000 spots were made available from 1 July 2021. However, these were restricted to first home buyers who wanted to build or buy a brand new property.
So, if you’ve got your eye on an established property – the time to act is now.
Are you eligible?
To be eligible, you need to meet the following criteria:
Property price caps also apply: