Have your first home buyer clients been eagerly awaiting the announcement of the full panel of lenders for the First Home Loan Deposit Scheme? The wait is over – with only 10,000 annual applications accepted nationally under the scheme from 1 January 2020, now is the time to take action and talk to your broker to get prepared.
We have access to both major and non-major lenders on our panel who are approved under the scheme. The individual bank policies in relation to the scheme do vary, all of which we are up to date with – it is important to review the products available and find the right solution for you.
The major benefit of this scheme is that successful applicants can borrow up to 95% of the value of their desired home without paying Lenders Mortgage Insurance (LMI), if you have saved 5% of the purchase price. The government will ‘guarantee’ the rest of what would normally be a 20% deposit to qualify for not paying LMI.
To find out if you are eligible, this is a great time to contact your broker. It will also put you ahead of the curve… and the competition. As a trusted adviser for 1st Home Buyers, we will guide your clients every step of the way.
It is likely that this new guarantee might hold up the process due to the number of applications being submitted, making it even more important to speak to your broker to get in early and have a plan in place for 1 January 2020.