The Australian Government scheme allows eligible first time buyers to purchase a home with as little as a 5 per cent deposit.
Usually home buyers with less than a 20 per cent deposit need to pay lenders mortgage insurance. Under the FHLDS, the government essentially goes guarantor so you aren’t slugged with a hefty insurance cost up front. Thanks Uncle ScoMo!
To make sure you’re ready to roll when 1 July gets here, you should start doing your preparation now.
If you haven’t already started, follow these steps to help you move into your own first home sooner!
- Book an appointment with your accountant to do your tax return for the 2019-20 financial year. To qualify for the scheme, you’ll need to prove your taxable income for the previous financial year was no more than $125,000 for a single, or $200,000 for a couple.
- Check the FHLDS eligibility tool to make sure you – and your dream first home – meet the eligibility requirements. Property price thresholds apply. For a Brisbane buyer your first home must be capped at $475,000.
- Research the lenders participating in the FHLDS to find a home loan that will meet your needs and see if you can pre-register your interest to secure a FHLDS spot with your bank pre 1 July.
And of course, talk to local real estate agents about the type of property you want to buy. They’ll be well placed to give you advice on what properties are available in your price range, and how to take advantage of the off-market activity we’re seeing due to COVID-19. Not everything is listed on realestate.com.au these days!