FHB scheme to have 'no significant impact' Finder.com.au RBA Survey

FHB scheme to have 'no significant impact' Finder.com.au RBA Survey
FHB scheme to have 'no significant impact' Finder.com.au RBA Survey

The majority of experts and economists in Finder.com.au's RBA Survey believe the First Home Buyer Scheme will have no significant impact on the market.

Some 90 per cent of the experts surveyed believed this to be the case.

Graham Cooke, insights manager at Finder, says the property value caps are problematic, especially in Sydney.

 “The Government’s scheme limits the purchase price of Sydney properties to $700,000, which to be honest, is a joke," Cooke said.

“Not many properties will qualify for this scheme – some apartment buyers may qualify, but not many houses are available for below that price.

“With the average regional home in Australia needing to fall below a $350k window to qualify, even options for those outside cities will be limited.

“Additionally, borrowing with a 5% deposit can end up being a lot more expensive in the long run. This could cost you over $90,000 in extra interest over the full term of a home loan at the big four’s standard variable rate.”

The First Home Buyer Scheme will guarantee mortgages for 10,000 first home buyers who have only saved a five per cent deposit, effectively helping them buy sooner without paying lenders mortgage insurance premiums. 

The scheme will be administered through the National Housing Finance and Investment Corporation (NHFIC) in partnership with lenders and is intended to make low deposit home loans cheaper.

To be eligible for the scheme you must be purchasing a property valued at or below the following thresholds:

FHB scheme to have 'no significant impact' Finder.com.au RBA Survey

 

Tags: 
First Home Buyers First Home Loan Deposit Scheme

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