First Home Loan Deposit Scheme Extended for New Builds

The Federal Government has officially announced its budget this week, and as always there has been a mix of winners and losers. In the winners’ corner, some good news for first time home buyers looking to break into the market as the First Home Loan Deposit Scheme has been extended for new builds, with an increase in price caps as well.

The Federal Government will add an additional 10,000 places to the scheme designed to make it easier for first home buyers to purchase a house with a small deposit, extending the initiative from October 6 until June 30, 2021 on the condition buyers are purchasing new builds.

It will enable an extra 10,000 buyers to break into the property market with a deposit as low as 5 per cent while avoiding lenders’ mortgage insurance, with the federal government acting as guarantor on the loans.

The scheme, which has already assisted 20,000 first home buyers in purchasing a home this year, will also see caps on the prices of new homes increase from $700,000 to $950,000 in Sydney.

To be eligible, home buyers must work through one of 27 participating lenders.

Aston Financial Services can help guide you through this initiative and provide advice that is tailored to your current situation. A strategic planning consultation with AFS is informed by industry trends, market analysis and the best fit for your financial and lifestyle goals.