In this week’s Update we wanted to share some timely information that is particularly of interest to those readers who are currently in the market for their first home, (or you know someone who is).

Now some of you may be aware that 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. There is also a similar program called the New Home Guarantee which does the same thing, except it applies to new builds, off-the-plan properties and house-and-land packages.

When these programs were first announced, the terms specified that the program would assist 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, a new announcement in December said that an extra 4,651 first home buyers will be able to access this type of assistance during the 2021-22 financial year, utilising 4,651 places which went unused during the previous financial year.

In case you’re wondering, it hasn’t been specified 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 applications received.

As is always the case when assistance packages are limited, the key is to act quickly so you don’t miss the cut-off for applications. So if you need any advice or assistance in finding a suitable first home, give us a call this week at Barry Plant Frankston on 9781 3100.

Best wishes,

Barry Plant Real Estate

Frankston & Cranbourne