If you are a first home buyer in New South Wales, you may be interested in the First Home Loan Deposit Scheme. This scheme helps first home buyers purchase a home with a deposit as little as 5% of the property value, without the need for lenders mortgage insurance. In this article, we will discuss the eligibility criteria for the First Home Loan Deposit Scheme in New South Wales.
Firstly, to be eligible for the scheme, you must be a first home buyer. This means you have never owned or co-owned a property in Australia before. However, there are some exceptions to this rule. If you have previously owned a property, but no longer do, and you meet certain criteria, you may still be considered a first home buyer. This includes if you have never occupied the property, or if the property was destroyed and is no longer habitable.
In addition to being a first home buyer, you must also meet certain income thresholds. In New South Wales, the income limits for the First Home Loan Deposit Scheme are:
- Singles – $125,000
- Couples – $200,000
These income limits are based on your taxable income from the previous financial year. If you are applying with a partner, your combined income will be taken into account.
It is important to note that these income limits are not the same as the maximum property purchase price. The maximum property purchase price for the scheme varies depending on the location of the property, as determined by the Australian Bureau of Statistics. In New South Wales, the maximum property purchase price ranges from $700,000 in certain regional areas to $950,000 in Sydney.
Another important criteria for the scheme is the property you are purchasing. The property must be a residential property that you intend to occupy as your primary place of residence. This means you cannot purchase the property as an investment property or as a holiday home. Additionally, the property must meet certain criteria, such as being a new or established dwelling, or a land and house package.
You must also have a deposit of at least 5% of the property value, but less than 20%. The scheme allows you to borrow up to 95% of the property value, without the need for lenders mortgage insurance. This can save you thousands of dollars in upfront costs and reduce your ongoing mortgage repayments.
It is also important to note that the scheme has a limited number of places available each financial year. In the 2022-23 financial year, there are 10,000 places available nationwide. In New South Wales, 3,000 places are available.
To apply for the First Home Loan Deposit Scheme, you will need to apply through a participating lender. The National Housing Finance and Investment Corporation (NHFIC) has a list of participating lenders on their website. You will need to provide proof of your income and eligibility, as well as information about the property you are purchasing.
In summary, the eligibility criteria for the First Home Loan Deposit Scheme in New South Wales include:
- Being a first home buyer
- Meeting income thresholds of $125,000 for singles and $200,000 for couples
- Purchasing a residential property to occupy as your primary place of residence
- Having a deposit of at least 5% of the property value, but less than 20%
- Applying through a participating lender
- Meeting the limited number of places available each financial year
If you meet these criteria, the First Home Loan Deposit Scheme can help you achieve your dream of owning your first home. It is important to seek professional advice and do your research before making any financial decisions. Good luck with your first home purchase!