First Home Loan Deposit Scheme
The government’s plan to help first-home buyers break into the market by lowering the required deposit amount is believed by many to be a step towards achieving affordability. With current house prices on a downtrend, how much do these buyers have to shell out for a deposit?
Under the First Home Loan Deposit Scheme, first-home buyers who are struggling to reach the 20% deposit requirement by lenders will be given a chance to apply for a home loan with a down payment of as little as 5%. The scheme will start by January 2020 and will be available to single first-home buyers earning up to $125,000 annually and couples taking home up to $200,000 per year. The government plans to help around 10,000 first-home buyers annually with the scheme.
With the current deposit adjustments, how much do first-home buyers in each capital market have to shell out initially to enter the housing market?
Dwelling values across Australia maintained their downward trend in April, falling by 0.5% on a month-on-month basis and 8.4% on an annual basis in April. These figures are according to the latest housing figures by CoreLogic.
Using CoreLogic’s April median housing data, the capital city where first-home buyers need to save the least for a home deposit is Darwin, which has a median value of $390,621. This means that first-home buyers would only need to shell out around $19,500 for their initial deposit under the scheme.
Sydney remained the most expensive capital city for dwellings, recording a median value of $780,672 — considering this, qualified first-home buyers will need to pay roughly $39,000 for their deposit if they want to buy a house in the city.