The Federal Government has launched five percent deposits for all first home buyers from today, October 1.
Through the expanded five per cent deposit scheme, the government will guarantee a portion of a first home buyer’s loan, so they can purchase with a lower deposit and not pay Lenders Mortgage Insurance.
In Werriwa almost 200 locals have already been able to buy their first homes thanks to the expanded five per cent deposits scheme.
Under today’s changes, all first home buyers in Werriwa will have access to five per cent deposits, with no caps on places or income limits.
Property price caps will also be set higher in line with average house prices, providing access to a greater variety of homes.
From today, property price caps in Werriwa will be raised from $900,000 to $1.5 million – meaning a first home buyer will have more options to choose from.
For a first home buyer in Werriwa looking to purchase a $1 million home, the five per cent deposits will save them $150,000.
“We want to help young people, and first home buyers achieve the dream of home ownership sooner,” says the Member for Werriwa, Anne Stanley.
“From today, all first home buyers in Werriwa will be able to buy a home of their own with a deposit of just five per cent, while single parents only need a two percent deposit.
“This scheme will cut years off the time it takes to save for a deposit, and you won’t have to pay a single dollar in Mortgage Insurance,” Ms Stanley said.
Minister for housing Clare O’Neil says levelling the playing field means backing a new generation of first home buyers into the housing market.
“Five per cent deposits for all first home buyers will mean more people can get into their own home sooner,’’ the minister said.
To find out more, visit www.housingaustralia.gov.au/home–guarantee–scheme.