The Government will launch their First Home Loan Deposit Scheme on 1st January 2020. The scheme states that first home buyers will now only have to save a 5% deposit helping them get into the market faster. The Scheme could also provide a $10,000 saving by not having to pay Lenders’ Mortgage Insurance.
The scheme will apply to first home buyers only and looks likely to have an earnings cap around $125,000 for individuals and $200,000 for couples.
The maximum property value able to be purchased under the Scheme will be determined later but it is expected to reflect the different property markets throughout Australia.