06 Jun Great News for First Home Buyers!!
Great News for First Home Buyers!!
In fact it is great news for all home owners with a mortgage.
Interest rates have dropped to a record low.
The Reserve Bank has cut its official interest rate by 0.25 percentage points to a new record low of 1.25 per cent.
This rate cut will mean lower mortgage costs and lower interest payments.
On top of this to help First home buyers into the market the Coalition has introduced the first-home loan deposit scheme
The coalition have promised to top up the first home owners 5% deposits with a 15% from government guarantee.
What does this mean? You no longer need to wait to save the full 20% deposit on a home to avoid paying lenders mortgage insurance. Only a 5% deposit is required to get into the property market.
This scheme is limited to the first 10,000 home buyers so it is prime time to take advantage of this opportunity.
Who gets it?
Single people earning up to $125,000.00 or couples earning up to $200,000 will be eligible for the first-home loan deposit scheme if they have saved 5% of the value of the home. Of course, the lenders will still do all the normal checks on the borrowers to make sure they can meet their repayments.