First home buyers will be a step closer to achieving their dreams tomorrow when 7,000 new places open up under the Australian Government’s First Home Loan Deposit Scheme.
The scheme aims to help first home buyers by guaranteeing 15% of certain loans – a position that allows borrowers to enter the market with as little as 5% deposit, plus settlement costs, rather than saving for a 20% deposit to avoid additional costs.
People’s Choice Chief Executive Officer Steve Laidlaw said the scheme – available through a limited number of lenders from 1 February – provided meaningful support for borrowers wanting to enter the market.
“Buying your first home is often the result of many years of hard saving and sacrifice, and people can often feel like it is beyond their reach. This scheme will help people get there sooner, and may open the door of home ownership for Australians who may have thought it was impossible,” he said.
“The 7,000 places available from tomorrow can make a real difference for first home buyers, and it is an opportunity that People’s Choice is proud to support.
“Buyers need to act fast and register now if they want to take advantage of this scheme and we urge people to visit www.peopleschoicecu.com.au/first-home-loan-deposit-scheme as soon as possible so we can see if they are eligible for the scheme and, most importantly, help them into their first home.”
Eligible borrowers will benefit from reduced fees and lower priced loans with a lower deposit as a result of the guarantee, and can also still access other programs like the First Home Super Saver Scheme, state and territory First Home Owner Grants and Stamp Duty concessions.
The scheme limits eligibility based on income, the purchase price and location of the property. Details of these limits are available on the People’s Choice website.
“People’s Choice is excited to be part of this scheme. Our long-time support of first home buyers has been recognised by Canstar, which has named us as the best customer-owned institution for first home buyers in Victoria for the last three years, in South Australia for the last six, and for the Northern Territory the last five times the award was available,” Mr Laidlaw said.
“If this helps our members achieve their financial goals, then we are doing exactly what we are here for.”
To talk to us about the scheme and learn how you can register, click here.