- November 21, 2019
- Posted by: Streamline Finance Services
- Category: Finance
So a lot of people have been asking me about this new government scheme that will allow first home buyers to buy with a 5% deposit. They have been asking me how this works and how much would they save. Below is an example on savings made by using the scheme
If you are a first home buyer and looking to purchase a property of $600,000 & you have savings of 5%.
Purchasing today: BREAK DOWN OF FUNDS NEEDED
Deposit $30,000
Lenders Mortgage Insurance $23,370
Stamp Duty $0
Legal fees $1,500
Total funds needed: $54,870
With the Government First Home Loan Deposit Scheme: BREAK DOWN OF FUNDS NEEDED
Deposit $30,000
Lenders Mortgage Insurance $0
Stamp Duty $0
Legal fees $1,500
Total funds needed: $31,500
So as you can see above the major difference is that the first home buyer doesn’t need to pay for the Lenders Mortgage Insurance and this is because the Government will guarantee your loan.
If you are a first home buyer and you would like to discuss this in greater detail please call me anytime 0417 131057