by Chelsea Pickering
With recent Government changes aimed at assisting people with purchasing their dream homes and changes in the property landscape, we now have access to updated schemes and incentives for home buyers.
Recent updates to the First Home Buyers Scheme are explained below, but first, a recap of pre-approvals and their importance.
What Is Pre-Approval?
A pre-approval for a home loan is when a lender assesses a borrower’s financial situation to determine how much money they can borrow to buy a house. During this process, available incentive schemes can be accounted for.
Why Seek Pre-Approval?
Having a pre-approval for a loan is important for several reasons. Firstly, it helps you understand how much money you can borrow and what you can afford. This saves you time by focusing your search on properties or purchases within your budget.
Secondly, a pre-approval makes you more credible to sellers and others involved in the loan process. It shows you are a serious buyer and increases your chances of getting the property you want. It also reduces stress by streamlining the application process and allows you to confidently make offers.
Overall, getting a pre-approval is crucial for a smoother loan process, allowing you to be nimbler and helping to get formal approval when you find your dream property.
Why Use A Finance Broker?
Using a finance broker for pre-approval gives you expert advice, and access to multiple lenders saves time and provides personalised solutions, negotiation support, and ongoing assistance. Not all lenders have access to the schemes and it’s something we can help you with.
First Home Buyers Scheme
The First Home Buyers Scheme in Australia is a set of government programs and incentives aimed at helping people who are buying a home. It provides financial support, such as grants and stamp duty concessions, to make homeownership more affordable. The scheme also includes initiatives like the First Home Loan Deposit Scheme and shared equity programs, which assist first home buyers in getting a loan or reducing the required mortgage amount. The specifics of the scheme can vary between states and territories.
The First Home Buyer Scheme can help our clients in several ways:
- Financial assistance: It provides grants and concessions, reducing the upfront costs of buying a home.
- Affordability: By lowering the overall cost of the property, it makes homeownership more affordable.
- Access to Government programs: It connects clients to other government schemes for low-deposit loans or favourable interest rates.
- Simplified processes: The scheme simplifies the application and approval process for first home buyers.
In summary, the First Home Buyer Scheme makes buying a home easier and more affordable by providing financial assistance and simplified processes.
First Home Buyers Scheme Eligibility & Recent Changes
To be eligible for the First Home Buyers Scheme in Australia, you generally need to meet the following criteria:
- Citizenship or permanent residency: You should be an Australian citizen or have permanent residency.
- First-time buyer: You must buy a home for the first time and have never owned or co-owned a property.
- Property value limit: There is usually a maximum property value that you can purchase under the scheme (State-based).
- Income threshold: There may be an income limit above which you may not be eligible for the scheme.
Recent changes to the First Home Buyer Scheme will allow a broader range of clients access to Scheme and the property market, including:
- Relationship: Applicants no longer need to be a de facto couple; they can be non-related parties.
- Prior ownership: Applicants can have prior property ownership for all scheme types, however, they cannot have owned a property within the last 10 years.
How We Can Help
The home loan process can seem daunting with so many options such as the various lenders, schemes, and people involved in the process. We can assist you through all of this and more by assessing your position, your access to the First Home Buyers Scheme, and setting up a pre-approval so you have full confidence to start looking at the market.
To discuss your options with us, please get in touch with us below or call us on (02) 4969 6600.
