Australia’s new “5% First Time Home Loan Program” has been implemented for some time, and for now, the enthusiasm for applications remains unabated. It is understood that so far, there are still a large number of places to apply for. As of February 1, 25 non-primary lenders will join National Bank and Federal Bank to accept applications for new plans from first-time buyers. Two major banks have registered 3,000 of the 10,000 guarantees and they are already applying for these secured loans.
Prospective buyers who are already on the lender’s list will need to go through a heavy bank approval process. Then, they talked about finding the right property in 90 days. Even though there will be 20,000 application places in 2020, there will still be a shortage of places and many competitors, because about 80,000 first home buyers need to find their own loan arrangements. The program is officially known as the “First Time Home Loan Program” (FHLDS) and is only available for couples with FHB not exceeding $ 125,000 in annual income or a total of $ 200,000 per year without saving 20% of standard deposits. Prime Minister Scott Morrison and Treasury Secretary John FRydenberg announced the plan a few days before the May 2019 election, when the real estate market was in a doldrums.
