Government to re-issue unused First Home Loan Deposit Scheme places!
Wednesday 03 February 21
The federal government has revealed that it is to reissue unused guarantees from the first tranche of the First Home Loan Deposit Scheme “in the coming days”.
The Assistant Treasurer and Minister for Housing, Michael Sukkar, has announced that the federal government is to reissue unused First Home Loan Deposit Scheme (FHLDS) guarantees from the 2019/20 financial year.
Under the first tranche of the scheme (which ran from 1 February-1 July 2020), 10,000 places were made available to help first home buyers purchase or build a new home with a deposit of as little as 5 per cent. Under the scheme, the government guaranteed up to 15 percent of the value of the property to help borrowers secure a loan without having to pay Lenders Mortgage Insurance, in a bid to help more borrowers enter the property market faster.
However, nearly 2,000 guarantees were not finalised - due to first home buyers not settling on their purchase (for one reason or another). Minister Sukkar commented: “Since the commencement of the scheme a year ago, there has been an extraordinary take up of guarantees by first home buyers with more than 15,000 first home buyers already settled and moved into their home since 1 January 2020"...“To further support first home buyers, the Morrison Government will reissue unused guarantees from the 2019/20 financial year from buyers who have since been unable to complete their purchase of their first home."... “This represents a great opportunity for around 1,800 buyers to now enter the property market sooner. First home buyers will be able to apply for these guarantees from the scheme’s lending panel lenders in the coming days.”
Further details of applying for these unused guarantees have not yet been released.