PHOTO: First-home buyer Nicky Rohilla was happy to purchase when the market was good for buyers, rather than waiting for a new home loan scheme. Photo: Stephen McKenzie
First-home buyers will need to move quickly to take advantage of a new federal government guarantee scheme, with applications coming in thick and fast while experts warn house prices are set to rise.
The First Home Loan Deposit Scheme began on January 1 and allows first-home buyers to get a loan with a 5 per cent deposit, rather than the standard 20 per cent. The government will then guarantee the remaining 15 per cent – effectively allowing buyers to avoid taking out lenders mortgage insurance.
Just 10,000 loans will be approved each financial year, and there are approximately 100,000 first-home buyers in Australia yearly.
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