At the beginning of the new year, the first home purchase subsidy program has become a major media hype topic, readers have left a message to ask: first home purchase plan and their own relationship?
Today I will use the form of cartoon to explain the first home purchase plan.
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Morrison`s promise was to deliver on the Liberal Party`s campaign promises. When prime minister mr morrison came to power, details were released of the first-time buyer`s down payment for guarantee. During the year,10,000 places will be allocated to each state or territory to help 10,000 people enter the housing market.
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Under the First Home Loan Deposit Scheme policy, first-time buyers pay only 5% of the down payment, and the remaining 15% of the down payment is provided by government guarantee, which means buyers save a lot of LMI.
Typically, homebuyers need a 20% deposit on house prices as a down payment and banks provide 80% of their home loans. Note: government guaranteee 15% down payment is only "guaranteeee ". As a borrower, you still have to pay the money, not for nothing. If it exceeds 80% of the loan line, homebuyers will pay credit premiums to financial institutions. In other words, even if you don`t have the policy, you can apply for a 95% loan if your conditions are good enough, but you have to pay a high premium for insurance.
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What conditions can I apply for? Conditions are met: Singles with a first-time home and an annual income of less than $125000, or families with a first-time home annual gross income of less than $200,000, are eligible to apply.
Applicants must be Australian citizen aged 18 or above.
Homebuyers have never made house purchases in Australia.
Many people use first-time home ownership plans as a lifeline to the housing market. In a big city like sydney or melbourne, the plan is a chicken policy. Let`s take first - time home purchase as an example.
- 95 per cent loan ($665,000) and repayment of principal and interest
- The monthly repayment at the current rate is about 3,000 Australian dollars
- Revenue $120,000
- $7,100 per month after tax
- less the cost of house ($1000)
- Sydney cost of living (around 3,000)
Such cash flows are quite dangerous for individuals.
So the price of A $700,000 is largely empty, and single buyers must cut their budget to around A $500,000. What can they buy in Sydney and Melbourne?
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Maximum Home Purchase Rate
So this plan is suitable for lower-priced areas.
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The optional bank not all banks can apply for the scheme. The following is a detailed list of the financial institutions authorized to represent the project:
