Under 30 middle income First Home Loan Deposit Scheme applicants dominate first year

Under 30 middle income First Home Loan Deposit Scheme applicants dominate first year
Under 30 middle income First Home Loan Deposit Scheme applicants dominate first year

First home buyers have now reserved all of this financial year’s First Home Loan Deposit Scheme guarantees, in a major milestone for the scheme.

The scheme was a key May 2020 election commitment of the Morrison Government, billed as helping Australians get into their first home sooner with a deposit of as little as five per cent.

National Housing Finance and Investment Corporation (NHFIC) data shows applications for guaranteed loans are being received from capital cities, regional centres or rural areas.

Intended purchase location data presently shows the following amount of guarantees have been secured in each state and territory;

  • New South Wales: 3,114

  • Victoria: 2,306

  • Queensland: 2,111

  • Western Australia: 550

  • South Australia: 413

  • ACT: 200

  • Tasmania: 183

  • Northern Territory: 35

NHFIC data also shows it is Australians on middle incomes who are taking advantage of the scheme, with the average income of applicants are well below the scheme’s caps.

The average income of single applicants is $67,387 ($125,000 cap) and for couples $109,525 ($200,000 cap).

The scheme has proven most popular with first home buyers under the age of 30 years of age who have secured 58 per cent of guarantees.

Another positive Scheme outcome is the fact that 12 per cent of guarantees have been secured by Australians over the age of 40. This is a clear indication Scheme is helping Australians who are a bit older and may have struggled in the past to get a deposit together.

Also, the largest amount of applications for guarantees, 44 per cent, have been made through mortgage brokers.

Despite the COVID-19 health crisis causing a slight flattening of demand in the Scheme in mid-March, first home buyers have shown confidence in the housing market and have moved quickly to secure the remaining guarantees available before the 30 June deadline.

On July 1, 2020, a further 10,000 guarantees will become available to first home buyers.

Tags: 
Home Loans Nhfic

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