95% loan with no LMI
Up to a $750k purchase price
Income up to $110k for singles and $200k for couples
I recently met with Ruan Burger from Time Home Loans to catch up about the new government incentive program which commences in January 2020.
This scheme is backed by the state government to incentivise first home buyers by helping them enter the market with a lower deposit and lower costs.
With as little as 5% deposit ($25,000 on a $500,000 purchase) first homer buyers can avoid Lenders Mortgage Insurance being added on top of their loan.
The 5% deposit must be genuine savings, or a lump sum held in your account for at least 3 months.
Eligibility is restricted but with a $110,000 income limit for singles and a $200,000 income limit for couples, the scheme should include the majority of buyers entering the market for the first time.
What Ruan foresees is that come January 2020 many first home buyers will take up this offer and the market for entry level properties will become flush with new hot buyers looking to take advantage of the scheme.
10,000 first home buyers will be eligible, so it would be wise to purchase towards the start of the year in case you miss out.
Buyers should also note banks scrutinising their accounts for risky transactions including AfterPay and ZipPay, gambling accounts like SportsBet and ordering too much Uber Eats.
Also worth a reminder, the Stamp Duty Exemption for first home buyers only applies up to a $500,000 purchase price, while this scheme does allow purchasers up to $750,000 if you really want to keep it cheap, stick to the $500k budget.
For more info on this or for advice on getting the right loan, contact your local broker or feel free to give me a call for a chat.
For assistance with targeting your property to the ideal buyer, get in touch.