Running at the moment is an exceptionally good offer for first home buyers. This is a federal government initiative.
This is a limited offer. There are a limited number of applications being approved up to the end of the financial year ended in June 2020.
Next financial year another 10000 approvals will be made. Because this is a limited offer the earlier one gets in for the offer the better the chance they will be approved.
This offer allows you to get into a loan with a 5 percent deposit without LMI insurance. LMI insurance stands for Loan Mortgage Insurance. With any loan where the buyer has less than a 20 percent deposit it is a requirement of the big banks that LMI insurance is taken out by the buyer. LMI is usually a large upfront expense.
However with this offer the government guarantees the remaining 15 percent of the deposit so that you do not need the LMI insurance. This is a terrific leg up for a first home buyer.
Usually having to come up with LMI insurance is a huge hurdle.
Your broker or bank will be aware of this application and it is well worth discussing it with them.
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