With most real estate offices returning to normal activity this week after a short break, it was nice to see some positive news for first home buyers to start the new year.
It may have escaped many people’s attention as it was announced shortly before Christmas, but the Federal Government will be increasing the amount of assistance available to market entrants who are struggling to save a viable deposit.
As many of our readers would be aware from past posts, there are two Federal Government assistance programs that are designed to help first home buyers who do not have a 20 percent deposit. The First Home Loan Deposit Scheme lets eligible first home buyers purchase a home with a deposit as low as 5 percent without having to pay lender’s mortgage insurance. A similar program called the New Home Guarantee does much the same thing, except it applies to new builds, house-and-land packages and homes purchased off-the-plan.
When these assistance measures were first announced the plan was to help 20,000 first home buyers in the current financial year…10,000 under the First Home Loan Deposit Scheme and 10,000 under the New Home Guarantee.
However, the latest announcement from the government has indicated that an extra 4,651 first home buyers will be able to access this type of assistance during the 2021-22 financial year, due to the fact that this was the number of places that were unused during the previous budget year.
It’s worth noting that the announcement didn’t specify which program will receive the extra 4,651 places, so it seems likely they will be spread over both programs, based on the level of demand from applicants.
The key point to keep in mind is that when assistance packages are limited, you need to act quickly so you don’t miss the cut-off. Of course, the team at Ian Reid have a long history of assisting Victorians to achieve their property goals, whether you are a first home buyer or not. So, feel free to give us a call this week on 9430 0000 to discuss your options.
Don’t forget, for those planning on selling in 2022 you’ll also find plenty of helpful suggestions in our free booklet, “Fatal Real Estate Traps Exposed”.