If you are in need to file for a loan to buy a home, it’s essential to understand basic requirements and whether you are eligible. First Time Homebuyer loan requires planning. The program is designed to help you become a homeowner in a specific geographic area.
In Australia, the government understands the struggles the first time home buyers go through while applying for loans. They have established a scheme to help its citizens get loans easily. Here is elaborate information about the latest first home buyer scheme.
To get the loan, you must meet all the set standard which vary with the state and the type of home you want to buy. The Australian Government has set criteria that must be met by first time home buyers to qualify for the loan.
• Income test
The criteria include income test. First home buyer loan is available for groups or an individual. If you are applying as an individual, your previous year’s taxable income must be lower than $125,000 to guarantee an opportunity to get the loan.
For couples, the taxable income must be lower than $200,000. This scheme has set criteria to ensure that only the needy people and those unable to purchase a home without a loan application. This criterion requires a Notice of Assessment, credit card, bank account, and payslips statements.
• Prior ownership test
Another test includes prior ownership, where you are evaluated whether you are a genuine buyer. If you previously owned a home, you do not qualify for the loan. In this case, you are required to present a statutory declaration as proof you have not kept any property before, be it commercial or residential.
2. Eligible Age
Eligibility also requires you to be a current Australian Citizen and above 18 years old. Permanent residents in Australia do not qualify for this assistance scheme. If you are applying as a couple, both of you must be registered citizens and of set age.
3. Deposit required
The scheme basis involves couples or individuals who can deposit about 5% of their income every month. If you can save about 20% of the value property without paying the lenders mortgage insurance, you do not qualify for this scheme.
The Australian government strives to ensure that only the people in need of this loan get it, and those who can invest in other ways and purchase homes without a loan create room for others.
4. How to Apply for the Mortgage Scheme
After ensuring that you have met all the set standards by the Australian Government’s first home buyer loan program, then you are ready for the next vital steps. Contact your mortgage broker to help with the loan application process.
The first home buyer loan scheme will help you plan for the future. It lifts the burden of high interests incurred while taking a loan from other lenders. You are guaranteed a loan after meeting all the set standards.
Making some decisions blindly might have unpleasant consequences when paying the loan. In this case, involve a professional for guidance