With the Reserve Bank doing its bit for first home buyers since June with three interest rate cuts, the Federal Government has jumped in to assist too. 

This month, the government announced the First Home Loan Deposit Scheme that guarantees first-timers on low and middle incomes could purchase a home faster with a deposit of as little as 5%. The Scheme will support 10,000 first home buyers each financial year.

Speedier homeownership is a must

Government research has revealed that it can take ten years for the average first home buyer to save a 20%, which is not good enough said Angus Raine, Executive Chairman Raine & Horne.  

“This scheme in tandem with the First Home Super Saver Scheme which helps first-timers build a deposit inside their superannuation fund by making voluntary contributions will help many first timers get onto the first rung of the property ladder faster,” he said.

Applicants will be subject to eligibility criteria, including having taxable incomes up to $125,000 per annum for singles and up to $200,000 per annum for couples. The Scheme will apply to owner-occupied loans on a principal and interest basis and will be subject to regional price caps.

Regional opportunities for first timers

The capital city price caps will apply to large regional centres with a population above 250,000.  These centres include Gold Coast, Newcastle and Lake Macquarie, the Sunshine Coast, Illawarra (Wollongong) and Geelong.

Angus Raine declared the price caps wouldn’t impact the appeal major regional capitals such as Newcastle, Geelong or the Sunshine Coast. “There is still plenty of houses and apartments that will fall beneath the cap for first-timers in the big secondary capitals such as Newcastle and Geelong,” he said.

Angus added, “In NSW, for instance, first home buyers can also move to major growth hub such as Bathurst, Wagga Wagga and Dubbo with diversified economies and jobs growth where median house prices fall beneath the regional caps.” In Dubbo in central NSW, for example, the median house price is $372,500. 

“These major growth hubs offer all the government, lifestyle and family amenities available in the big capital cities with the addition of real estate affordability for first home buyers.”

To discuss the opportunities and grants available to first time buyers in your suburb or region, contact your local Raine & Horne office.