Welcome to Top Tips Tuesday.

This week we’re giving a tip for those first-time buyers looking to enter the property market. The government announced a scheme some time ago known as a First Home Loan Deposit Scheme.

This scheme helps first-time buyers that have got a deposit less than the 20%. Generally, if you borrow more than 80% of the value of the home, the banks will charge you LMI, which is lenders mortgage insurance. And that can be quite a significant amount and generally you need the minimum deposit, plus the LMI figure.

The government are guaranteeing that difference, which essentially means that banks won’t charge you the LMI, which can save you a lot of money.

There’s an allocation currently of about 10,000 applicants per year, and each bank will have a different allocation. The best way to find out information about how it works, and if you’re eligible is to contact your bank direct or your finance specialist.

If you’d like a copy of the First Home Loan Deposit Scheme document, please reach out to us and we can email that for you.

If you would like to see the full video click here. 

If you would like to have a discussion about your property needs click here to book a time in my calendar and I will give you a call.

Regards,

Geoff Tomkins

Buyers Advocate

PH: 0404 852 781