Gov't scheme saves first-time buyers thousands
Rockhampton has always been home for born and bred residents Emily Horan and Luke Richardson and as they start to plan the next chapter of their lives together, there's nowhere else they'd rather be.
The young couple had been dreaming of purchasing their own piece of real estate here for a few years but didn't expect that dream to come to fruition any time soon.
But luck, it would seem, was on their side.
When representatives from MyState Bank walked into Mr Real Estate where Emily works as a business development manager, to tell them about the First Home Loan Deposit Scheme, the pair realised their dream could become a reality in no time at all.
"We thought we'd just go and have a chat with them," Emily said.
"So, we went and had a chat with them that afternoon and ended up signing up for the loan.
"It was quite a quick turn around, so within a week we had pre approval and then a week after that we found a home."
Within a month, the couple had picked up the keys to their Hutcheon Street, Kawana home.
Property data shows the home sold for $365,000.
MyState Bank, which has multiple branches in the Rockhampton region, was chosen by the Australian Government to be a lender for FHLDS in a bid to help more first home buyers like Emily and Luke realise their home ownership goals.
The FHLDS is a new initiative from the Australian Government designed to support eligible first home buyers purchase a home sooner.
The scheme provides a guarantee covering up to 15 per cent of the property's value to eligible first home buyers- meaning that eligible first home buyers can purchase a property with a deposit as small as 5 per cent without the need to Lenders Mortgage Insurance. This initiative potentially saves the borrowers thousands in LMI.
As a participating lender, MyState Bank is currently taking home loan applications for pre-approval under the Scheme which have been be submitted from February 1, when a further 5000 loan allocations became available for non-major lenders.
But MyState Bank general manager, Banking, Tony MacRae said potential first home buyers who didn't act quickly could risk missing out on their place under the Scheme which is allocated on a 'first in' basis.
"The strong demand we have seen so far suggests that allocations are likely to dry up quickly as thousands of property hopefuls seize the opportunity to enter the housing market earlier," Mr MacRae said.