Some mysteries unravelled for those awaiting the key points which were previously unknown are:
- The FHLDS is only available to 10,000 first home buyers per financial year. This means there will be 10,000 opportunities on 1st Jan 2020, and another 10,000 from 1st July 2020. It is estimated that only 20% of first home buyers will be assisted with the scheme in 2020 with the other 80% needing to source their own regular borrowing arrangements.
- For Newcastle and Lake Macquarie First home buyers there will a price cap of 700,000. This means you will need to purchase a property less than this to be eligible, which is a higher price cap than most other areas in the rest of the state.
- Lenders for this scheme have yet to be announced as The National Housing Finance and Investment Corporation (NHFIC), who are the controlling body of the scheme and they will be responsible for implementing the First Home Loan Deposit Scheme, are still currently sourcing lenders.
- You won’t be able to apply to buy land only, unless you get a construction loan for the dwelling as well. If you’re a first home buyer with a building contract and planning on building your first new home, will have to ensure construction starts within 26 weeks of the settlement date and an occupation certificate is obtained within 15 months. Off-the-plan purchases are permitted under the scheme.
- First home buyers with contracts of sale dated on or after the 1st of January 2020 are eligible to buy under the scheme, and will apply to owner occupied loans on a principal and interest basis only, except for construction loans where the loan agreement may permit interest-only repayments..
If you’re buying your first home, and want to give yourself the best chance to be eligible for the scheme you best call me now to get the ball rolling so your in the best position come 1st January 2020.