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If you’re a first home buyer, the perfect opportunity to get into the property market is now. With RBA cuts, changes in the real estate market and new government scheme, it will become easier for you to become a homeowner.

Currently, you will need a deposit of 20 per cent, which can take many Australians as much as 10 years to save up enough for their deposit, especially when the prices are increasing faster than the household income.

The First Home Loan Deposit Scheme will allow you to borrow a mortgage loan with as little as 5% deposit, helping many turn their property dreams into reality.

The First Home Loan Deposit Scheme is scheduled to come into effect by January 2020, now is the time for you to start planning for your dream home. The government will prioritise smaller lenders to boost competition among them and encourage better rates, so it’s an excellent opportunity for you to start looking into loan options that would work best for you.

Not only those looking for residential property are excited about this government initiative. There are plenty of first home buyers who will be able to take advantage of the new system to get an investment property.

How will the program work?

This initiative is meant to help 10,000 loans yearly get access to more borrowing power and options. For those struggling to save up for a 20 per cent deposit, the government will act as the guarantor allowing you to apply for a mortgage with a 5% deposit.

First home buyers who are single and earning up to $125,000, and couples who are earning up to $200,000 will be eligible to participate in the program. Beneficiaries of the initiative will be able to receive support for the lifetime of the loan or until the mortgage is refinanced.

If you’ve been thinking about buying your first home, want to see your options or want to get most out of the new government scheme, get in touch with one of our mortgage brokers to book a free consultation.

First Home Buyer Guide

Everything you need to know to buy a property in one easy guide. This guide is packed full of checklists and tools to help you make the right choice.

But the truth is, every additional percentage point in your home loan interest rate could cost you thousands of dollars every year… and as your home loan is most likely the longest loan you will ever have. If it was a short-term loan, it wouldn’t matter as much… but 30 years is a long time to be paying extra money if you don’t need to.

Real estate is expensive so why would you want to pay more than you have to?

Look at the two below examples:

Loan $500,000 $500,000
Interest Rate 3.8% 4.3%
Term 30 Years 30 Years
Total Principal + Interest $838,800 $890,640

Total savings: $51,840

A difference of 0.5% in your home loan could end up saving you more than $50,000… which means you could pay it off faster!  Like we said, it really adds up over 30 years.

What we’re trying to say is your interest rate matters. You don’t want to pay more than you have to… which is what we’re here to help with.

Our team of mortgage brokers have access to more than 40 lenders and are experts are finding the right lending solution for your needs.

If you would like to book an appointment, contact us today.

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