Melton There has been a lot of talk about the Government’s new 5% deposit home loan scheme for first home buyers. This will take effect on January the 1st 2020, and of course it has excited all first home buyers around Australia. However, there are a few things you should know before applying for a 5% home deposit.
Whilst it could save first home buyers years in accumulating a 20 per cent deposit, the 5 per cent deposit could cost tens of thousands of dollars more than a 20 per cent deposit of the life of the loan.
The First Home Loan Deposit works in the way that the government will cover the costs of lenders mortgage insurance for approved first home buyers when they have at least a 5% deposit. Lenders mortgage insurance is basically inevitable if you have only a small deposit, because of course the banks want to cover themselves should something go wrong and you don’t have enough equity to cover them.
If you are looking at applying for the loan, you need to be extra careful and pay attention to things like additional servicing costs. If you are looking at houses for sale in Melton, then speak to a local Melton expert if you’re not sure what you should be looking out for. There are many great Melton conveyancers & brokers who would be happy to help.
If you are looking for recommendations for Melton finance brokers or conveyancers, you can give Professionals Ryder Real Estate Melton today on 03 9743 6400.
