According to mortgage brokers eChoice, now the 2019 federal election over, it's time to move on to the discussion of election promises. First on the agenda, they say, is the new First Home Loan Deposit Scheme.
The Government's Scheme proposes to help first home buyers purchase property without having to save for the full 20 per cent deposit usually required.
EChoice provide some insight into the scheme and they say the scheme promises to give eligible first home buyers a "leg-up" when buying their first home, by allowing them to get a home loan with a deposit of as little as 5 per cent without paying Lenders Mortgage Insurance.
Buyers will be able to put all this money towards the deposit, potentially saving around $10,000 in insurance costs and, in theory, allowing them to enter the market sooner.
To be eligible, you'll need to be a first home buyer on an income of up to $125,000 annually (or up to $200,000 for a couple).
The scheme will be capped at 10,000 loans per year and banks and lenders will still carry out their checks to ensure the borrower can meet their repayments.
Eligibility for the scheme will also depend on the region you're buying in and, based on this, there will be a limit to the value of the home you can purchase.
Regional boundaries and property value caps are yet to be announced before the scheme begins on 1 January 2020.
Although there's a while to wait for this new initiative to roll out, there are plenty offirst home buyer grantsand schemes currently available across Australia.