GOOD NEWS for First Home Buyers!

This week the Federal Coalition announced a new initiative to assist first home buyers to enter the property market; The First Home Loan Deposit Scheme (FHLDS) will be available to first home buyers who have saved a deposit of at least 5 per cent. This means they won’t have to save for a full 20 per cent deposit, which is often a massive financial stumbling block preventing and/or delaying buyers from purchasing their first home. The scheme will also help first home buyers save around $10,000 by not have to pay Lenders Mortgage Insurance.

FHLDS will be targeted towards first home buyers earning up to $125,000 per year, or $200,000 for couples. The value of homes that can be purchased under the Scheme will be determined on a regional basis, reflecting the different property markets across Australia.

Currently, government figures reveal it can take 9-10 year for the average first home buyer to save for a deposit, and although more than 110,000 Australians bought their first home in 2018 (the highest level in 9 years), the ‘Great Australian Dream’ has been out of the reach of many in recent years. It is hoped and anticipated that this initiative will assist many to realise their dream of owning their own property not just one day, but sooner.

The policy has been matched by the Australian Labor Party and is to commence on 1 January 2020; with both major parties offering this incentive, its implementation is not dependent on who wins the election.