The second round of the Federal Government’s First Home Buyer Lending Deposit Scheme, which opened on 1 July, is helping to create strong activity from first- time buyers. The scheme gives first-home buyers the opportunity to buy a home on a 5% deposit without paying mortgage insurance, with the Government helping with the remainder of the 20% deposit by providing banks with a guarantee of up to 15%.
Of the 10,000 applications that became available from 1st January, 5,500 first home buyers are already living in their homes, says Nathan Dal Bon, chief executive of the National Housing Finance and Investment Corporation. Round one funding was most popular with buyers under the age of 30 years who accounted for 59% of the guarantees, while 12% of guarantees were given to those over 40. The scheme works in tandem with the Federal Government’s coronavirus stimulus package, HomeBuilder, which offers $25,000 to eligible homeowners building a new home. State-based first-home buyer grants and stamp duty exemptions of $10,000–$20,000 can also be used alongside the program.