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First home loan deposit scheme reaches capacity (for now)

The 10,000 guarantees available via the new First Home Loan Deposit Scheme have been filled or reserved, but for those who missed out there’s a second chance coming soon in July.

There have been 5,500 guarantees issued under the federal government scheme, while another 4500 borrowers have guarantees reserved in the coming months.

The scheme, which was launched on January 1, can allow first home buyers with only a 5% deposit to be eligible to purchase a property without paying for lenders mortgage insurance (LMI).

This guarantee gives first home buyers a leg up into the property market, as it can save you as much as $10,000 in LMI insurance.

Get ready for round 2!

Now, even though the scheme kicked off at the beginning of this calendar year, the next phase is set to begin when the new financial year ticks over on July 1.

And you’ll want to be organised when July rolls around.

Let us explain why.

The 10,000 spots in the scheme are broken up into two lots of 5,000 – one half for two major lenders (CBA and NAB), and one half for 25 non-major lenders.

If you’re interested in applying through one of the two major lenders, it’s important to note that they go pretty quick.

In fact, 3000 of these 5000 spots were reserved in the first 10 days of the scheme being launched back in January.

With that in mind, if you’re interested in applying for the scheme through a major lender you’ll want to get in touch with us now so we can start getting organised.

Are you eligible?

In order to be eligible, first home buyers can’t have earned more than $125,000 in the previous financial year, or $200,000 for couples (and both buyers need to be first home buyers).

There are also property price caps for different cities and regions across the country, which you can find out more about here.

Also, even though you may have a 5% deposit saved for a house, you still need to obtain finance approval from a participating lender.

And that’s where we can help.

We’re more than happy to run through the scheme in more detail and, if you’re eligible, help you apply for finance with one of the scheme’s participating lenders before places fill up again.

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SMI Financial Solutions Pty Ltd ABN 92 154 155 307 is a Corporate Authorised Representative of Infocus Securities Australia Pty Ltd, ABN 47 097 797 049, AFSL 236523.  Christopher Smith (478941) and SMI Financial Solutions Pty Ltd (418006) are authorised for Credit Services with outsource financial ACL384324. Infocus is not liable for any credit services provided by either entity. Information published on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice is General Advice and does not take into account any person's particular investment objectives, financial situation and particular needs. Before making an investment decision based on this advice you should consider, with or without the assistance of a qualified adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances.

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