Government Increases First Home Loan Deposit Scheme Places
Following on from the success of the previous releases of the First Home Loan Deposit Scheme, the government has announced four days ago that it will be releasing a further 10000 places. This scheme has successfully put 20000 new home buyers onto the property ladder so far. Places on the first round of 10000 took approximately six months to fill up, as brokers, banks, and clients got their heads around its workings. The next round of 10000 took roughly three months to be exacerbated, with some of the major lenders going onto a waitlist system within a month. One can only surmise that these rounds take-up will be even faster. So, how do you take advantage?
This is a case of first in best dressed, and while this is a mortgage broking website, a mortgage broker is probably going to be best placed to help you secure your spot. I will take a break here to say that Castle Mortgages are mortgage brokers who are very capable and serve Adelaide and the surrounding areas. The panel of lenders that you will be able to use that are part of the scheme will be announced on the 9th of October. Why this is important is that no two applicants are ever alike. Getting a loan for the first time can be trickier than once you are established in the market. There may be a lender that you will be able to get a loan through while another on the panel would not grant it due to the difference in their lending policy. This is where a broker who knows there stuff would be able to steer you in the right direction and make the application process infinitely easier. As mentioned above, the places fill up fast, so being able to secure a spot by meeting the latest application criteria quickly means that you can secure a spot and then go hunting for your first home.
Again here is where a mortgage broker can assist you in making sure you have all the complying documentation and that you have your head around how you would like to structure your debt.
At present, we are busy waiting to find out the changes to the qualifying criteria for the FHLDS. We expect them not to be huge but crucial. I have written quite extensively on the FHLDS, and to get a good idea of what the last qualifying criteria were, you canread about it here.
The main advantage of the First Home Loan Deposit Scheme is that it enables clients to save on lenders mortgage insurance premiums and get a competitive interest rate as if they had a 20% deposit. The reason being is the government is standing in as a guarantor on the loan. This enables large savings in interest and Lmi from the get-go. It also puts first home buyers in a home sooner as they need to save only a 5% deposit in most states ( 5% deposit plus stamp duties in South Australia)
The easiest way to get your head around this, though, and see if it can be done, is to speak with a Mortgage broker. Castle Mortgages is Adelaides local mortgage broker. We are very good at what we do and will help make light work of getting your first mortgage, get in touch today for a free no-obligation chat.