First Home Buyers buying with as little as 5% deposit? The rush is on!
Bernadette Leahy, The Edge Mortgage Consultants, Thursday 17th February 2022
Places in the FHLDS or First Home Loan Deposit Scheme are currently being hotly contested by eligible First Home Buyers. When the Federal Government announced further places in the scheme were being released for First Home Buyers to snap up, the race was on.
The FHLDS enables those buying their first home, whether a couple of single, to buy with as little as a 5% deposit on an established property. It basically means that first home buyers will avoid paying for, or having Lenders Mortgage Insurance to their loans, which in many cases can save thousands of dollars.
First home buyers still need to show that they have genuinely saved a 5% deposit over a period of time to be eligible as well as being below specific income thresholds. However by removing the Lenders Mortgage Insurance from the equation, it often means many first home buyers can borrow more than they would be able to otherwise.
So indeed the rush is on as there are a very limited number of places available from lenders who are participating in the scheme. It is thought that many of the available spaces are likely to be taken in the next couple of weeks.
So if you are a first home buyer looking at getting a helping hand into buying and affording your first home, it is crucial that you act now.