Being a Victorian mortgage broker, I am excited about the upcoming Help to Buy Scheme introduced by the Federal Labor Government. This initiative aims to make it easier for first-time and eligible second-home buyers to own a home. The Help to Buy Scheme is a viable home loan alternative to assist you in exploring your financing options.
It's important to note that the scheme is a federal government initiative and hasn't officially launched yet (as of June 19, 2024). Here's what we know so far:
Deposit Required: It's expected to require a minimum deposit of only 2% of the property value.
Government Contribution & Ownership: The government will contribute 30% of the purchase price for existing properties and 40% for new builds. In return, they will own a share of the property proportionate to their contribution.
Advantages:
Break into the Market Sooner: The lower deposit requirement allows you to buy a home earlier, potentially saving on rent and building equity faster.
Reduced Mortgage Costs: With a smaller mortgage amount due to the government's contribution, your monthly repayments will be lower, making the whole process more manageable.
No Lenders Mortgage Insurance (LMI): This can be a significant saving, especially for lower deposit purchases.
Eligibility (Expected):
Australian citizen over 18 years old.
Annual income less than $90,000 for singles or $120,000 for couples.
No current property ownership in Australia or overseas.
Purchasing a property as your principal place of residence.
Minimum 2% deposit saved.
How to Apply (Details Unknown):
The scheme is expected to launch in early 2024. Specific details about applications and participating lenders are still being finalised.
However, you can keep an eye on the following resources for updates:
National Housing Finance and Investment Corporation (NHFIC): https://www.housingaustralia.gov.au/
Australian Government Department of Social Service (DSS): https://www.dss.gov.au/housing-support/programmes-services/housing
Your preferred mortgage broker (like me!): A good mortgage broker can stay updated on the latest programs and help you navigate the application process. Fill out the form to stay updated.
Alternative Victorian Option:
Victoria offers its shared equity scheme called the Victorian Homebuyer Fund. This requires a 5% deposit, with the government contributing up to 25% of the purchase price in exchange for an ownership stake.
Considering your Options:
Whether the Help to Buy Scheme or the Victorian Homebuyer Fund is better for you depends on your circumstances. Feel free to reach out, and I can help you explore both options and determine the best path to homeownership for you!
Comments