Act quickly to capitalise on First Home Loan Deposit Scheme

4 March 2020|Finance| Off Comments off on Act quickly to capitalise on First Home Loan Deposit Scheme|

ROBERT and Chantell McShane are strong advocates of the Australian Government’s First Home Loan Deposit Scheme (FHLDS).

With the help of the scheme, the couple are set to become homeowners in Tasmania for the first time.

“I moved to Hobart in 2006 after graduating from university,” Mr McShane said.

“I did not have enough money for a deposit, and I was not in a hurry to get into the market at that time so was happy to rent.

“I moved to Sydney for four years for work, met the love of my life, married her and in May last year moved back to Hobart.

“But it was a completely different Hobart property market that I came back to.

“We house sat for a while, lined up a rental and have been renting ever since.”

Through MyState Bank, the McShanes have been pre-approved to access the FHLDS.

The scheme provides a guarantee covering up to 15 per cent of a property’s value to eligible first home buyers – meaning that eligible first home buyers can purchase a property with as little as a five per cent deposit without the need for Lenders Mortgage Insurance (LMI).

Mr McShane said the couple had been working and saving hard for a deposit on a home, but there was only “so much you could sacrifice.”

“It is usually a long-term target when you need to save up to $100,000 just for a deposit,” he said.

As a participating lender, MyState Bank is currently taking home loan applications for pre-approval under the Scheme to be submitted from 1 February.

But MyState Bank general manager banking Tony MacRae said potential first home buyers in Tasmania would need to act quickly as places in the Scheme were allocated on a ‘first in’ basis.

“The strong demand we have seen so far suggests that allocations are likely to dry up quickly as thousands of property hopefuls seize the opportunity to enter the housing market,” he said.

MyState Bank will also offer a 0.05 per cent discount on its lowest advertised basic variable rate for home loans with a loan-to-valuation ratio (LVR) of up to 95 per cent, as well as waive the establishment fee for eligible customers.

Under the Scheme, property price thresholds are $400,000 for Hobart and $300,000 for other areas in Tasmania.

Mr McShane, who rents in North Hobart, was looking to buy in the northern suburbs.

“Anything between Glenorchy and Claremont in our price range, which will ideally allow me to ride to and from work, would be great,” he said.

“We have been working within the price limit set by the scheme and have started making offers.

“We made an unsuccessful offer recently – it is a highly competitive market.”

Enjoy this story? Share it!

About the Author: Glenorchy Gazette

The Glenorchy Gazette is your monthly community newspaper, reaching over 24,000 homes and businesses in the Glenorchy municipality. It is the product of Nicolas Turner, Justine Brazil, Ben Hope, Simon Andrews, Tobias Hinds and guest contributors, with support from advertisers.

What’s new?

Go to Top