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From July 1, the Federal Government with the support from Labour have announced that the price caps currently placed on the First Home Loan Deposit Scheme will be increased across the country.

What is the First Home Loan Deposit Scheme?
The Scheme is an initiative by the Australian Government in conjunction with the National Housing and Finance Investment Corporation (NHFIC) introduced to help people venture into home ownership sooner with as little as a 5% deposit and not having to pay Lender’s Mortgage Insurance (LMI).

A big gain of the scheme is that it can be used in conjunction with the First Home Super Saver Scheme and the First Home Owners Grant (FHOG).

There are 50,000 guaranteed loans per year from July 1 2022, this has been increased from 10,000 places this financial year.

Are there property price thresholds?
Yes, however these thresholds have been increased. From July 1, the Government has announced that they will increase the price caps currently placed on the First Home Loan Deposit Scheme from $500,000 to $600,000 in Perth metro and regional centres and for the rest of the state the property cap will be increased to $450,000.

The aim of the Scheme is to enable people to get into their first home sooner so the thresholds are relevant to a modest home within specific areas.

A regional centre is defined as an area with a population over 250,000; allowing for the fact that the cost of property is higher in those areas in comparison to the smaller towns. Your broker will be able to give you a quick answer regarding the threshold in your desired suburb.

How do I apply?
Speak to your Launch Finance broker who can find out if you are eligible, help you get your finances prepared, and navigate the market for the right loan product amongst the participating lenders that will suit your specific circumstance. At this stage your broker can also look into whether you are eligible for the `First Home Owner’s Grant’ in conjunction with the FHLDS.

Need more details?
All of the Launch Finance brokers are experts in this field and understand the rules and guidelines of the First Home Loan Deposit Scheme. They can guide you through the process to see if you are eligible.

Speak to one of our brokers today on (08) 9367 4222 or email [email protected] and our award-winning team can help you work towards purchasing your investment property.