New Government mortgage guarantee scheme aims to help first time buyers enter the market
We welcome a recent announcement that will allow first-time buyers to enter the property market easier than before. Late last year the Government announced a scheme that will allow first time home buyers to purchase their first property with a deposit as little as 5%. The aim of this scheme is to help 10,000 first time home buyers in the lower to middle incomes to enter the property market.
The Government announced that, under the scheme, it will offer first-time buyers loan guarantees for Sydney properties valued at up to $700,00 and $450,00 across the rest of New South Wales. Melbourne residents will have access to the scheme for homes up to $600,00 and $375,000 throughout other parts of the state. The price thresholds will apply to all regional centers with a population of over 250,000, including New Castel, the Sunshine Coast, Gold Coast, Illawarra, and Geelong.
The Finance Minister, Mathias Corman, stated “The price caps are calibrated to take into account median house prices and conditions in respective markets and indeed they are set with reference to the threshold for concessional arrangements for stamp duty in various states,” and he went on to further add that “There is no specific number of guarantees per jurisdiction it will be on a … first-in, best-dressed basis.”
During September the median property value in Sydney, as analyzed by CoreLogic, was $805,00 for Sydney and $635,000 in Melbourne.
There will be up to 10,00 guarantees each year and the scheme will be driven by demand with the focus on helping first time home buyers to buy their first, affordable home. The requirements for individuals to qualify will be $125,000 per year for singles while couples who will earning less than $200,000 will qualify.
This is great news for those in the lower to middle incomes who want to invest in a home of their own. The scheme will open opportunities for them in both the major cities and regional areas of Australia. The overall effect of this scheme will have a positive effect on the property market in general as more and more people start to enter the property market.
We welcome this Government scheme and look forward to helping these first-time home buyers purchase a modest, first time home of their own.
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