First Home Loan Deposit Scheme
This is a government initiative designed to help first home buyers get into their first home.
So what exactly is it?
✅ Buy a property with 5% deposit.
✅ No LMI (saves you $10,000-$30,000).
✅ Existing dwelling: Property value must be < $700,000
✅ New Home: Property value must be < $950,000
✅ 10,000 places were made available for the 20-21 financial year.
Who is eligible?
- ✅A minimum deposit of 5%. Some lenders require this accumulated as genuine savings.
- ✅Must provide evidence of funds to pay stamp duty, legal fees and bank fees.
- ✅Must be >18 years old.
- ✅Must be an Australian citizen. Cannot be a permanent resident.
- ✅Must hold a medicare card.
- ✅Must be your first home & you must intend to live in it (not investment).
- ✅Must earn less than $125,000 as a single or $200,000 as a couple.
- ✅The last financial years income before your application is used in the assessment.
- ✅Repayments must be Principal & Interest. Exception: if building a home.
Do I need genuine savings?
✅Yes, for NAB & CBA.
✅Genuine savings can be defined differently with the smaller lenders.
✅Applying with the right bank or lender is vital.
✅Simply place your grant or gift in a bank account for 3 months and it becomes genuine savings.
Do I have to Build a New House?
✅You can buy new or exiting house under this scheme.
✅Vacant land with a contract to build a house.
✅House and land package.
✅Off the plan unit.
✅Existing house or unit.
✅Reserve your place with the Scheme Place Reservation (SPR) process.
✅I will do it for you at Mortgage Broker Revesby.
✅Medicare number
✅Notice of Assessment for the year directly prior to the year entering this scheme.
✅100 points ID
✅Liabilities, Assets and other standard lending criteria.
Which lender should I use?
✅The larger lenders will have stricter criteria.
✅There are smaller lenders with less struct criteria.
✅It is best to contact Mortgage Broker Revesby for us to assess and guide you properly.
✅There are no easy answers, we must assess you as an individual.
- There are 27 lenders you can go through.
How do I Apply?
- 1. Mortgage Broker Revesby will contact one of the participating banks under the First Home Loan Deposit Scheme on your behalf. We can apply to more than one lender, however, only one slot will be reserved.
- 2. The bank will see if there is a spot available (10,000 slots).
- 3. The bank will reserve you a slot for 14 days. Mortgage Broker Revesby will need this time to provide you with a home loan pre-approval. The pre-approval must be lodged in the scheme portal during this time.
- 4. The lender now will pass your taxable income details, borrowing capacity, pre-approval and intended property location to the portal to be approved a place in the scheme. This reservation will last only 90 days from the date of issue. NOTE: due to COVID some lenders offer an additional 90 days due to restraints on viewing properties.
- 5. Now you can bid for you property with confidence knowing your borrowing capacity and secured place in the scheme.
- 6. Sign your Contract of sale. You know have 30 days to supply all documents for a Guarantee Certificate under the First Home Loan Deposit Scheme.
- 7. Once you receive your Guarantee Certificate, the lender must input your settlement details to the scheme portal within 100 days.
What if I miss a reservation slot on the scheme?
✅You can go on a reserve list. More may open in the future.
What about Borrowing Costs?
1. 5% deposit
2. Borrowing costs:
✅Stamp duty is waived up to $650,00 property value in NSW.
✅Transfer of land - $143.50
✅Titles office for mortgage - $143.50
✅Loan establishment fees - around $600.
✅Legal - $1,500
✅LMI - waived
✅Building inspection costs
I'm here if you need me.
No fee service.
Contact us
Matthew Stack
www.mortgagebrokerrevesby.com.au
matthew@mortgagebrokerrevesby.com.au
0423 237 242
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