The Federal Government’s First Home Loan Deposit Scheme starts on 1 January, but it is limited to 10,000 borrowers and not all lenders have been endorsed to participate, so applicants need to be aware of all the terms and conditions.
The scheme enables borrowers with deposits of just 5% to be given a special government guarantee which allows them to avoid expensive lenders’ mortgage insurance.
To be eligible you must be an Australian citizen, a first-home buyer and be earning no more than $125,000 a year ($200,000 for a couple).
The scheme is open to a range of property types, including apartments, townhouses, house & land packages and existing houses.
Couples must be married or in a de facto relationship. Applicants who buy a property with a friend or sibling do not qualify under this scheme.
Each city and regional area has a different cap on the purchase price. A full list of these region price cap can be found HERE.
Thoughts from Scott;
"The Mornington Peninsula falls under Region ID 5 and is considered part of Melbourne Metro/Capital City, which means that loans up to $600,000 will be considered for buyers looking here. This is the second highest amount, with Sydney Metro being given the most help at $700,000. To be eligable, first home buyers need to sign the contract of sale of a house on or after the 1st of Jan 2020 and must move into the house within 6 months after settlement occurs. And yes, the loans will be considered for off-the-plan purchases, house and land packages and even land purchases with a separate contract to build."