FHLDS too much savings?

Discussion in 'Loans & Mortgage Brokers' started by Maximus, 6th Feb, 2020.

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  1. Maximus

    Maximus Well-Known Member

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    Hey All,

    I just got word from a broker i have been speaking to at the CBA that i have been approved for a "spot" in the scheme, i still think they are just using the scheme to create a sense of FOMO.

    Basically i didnt do much research on the scheme before but i just found this statement in the scheme information guide "If you have 20% or more saved, then your home loan will not be covered by the Scheme".

    So basically what im seeing in this is they are forcing first home buyers to buy the most expensive property they can or spend their savings prior to purchase.
    Just a thought would a temporary money transfer to a family member show me as eligible and within the confines of the law?.

    I have greater than 20% for the maximum allowed purchase however my income for 2018-2019 was much lower than i thought (37K but i have lots of benefits not designated as income) so i cant get a loan anywhere near the cap and my savings are too high to be eligible for the FHLDS.

    Not sure what to do here now as i feel like im being punished for being a diligent saver :(
     
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  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Needs based, not deserve based

    Different animals

    ta

    rolf
     
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  3. Lindsay_W

    Lindsay_W Well-Known Member

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    You're in a good position by having the savings that would allow you to buy a property without having to pay LMI in the first place - I don't think that's something to feel bad about, I would rather have the savings and not be able to qualify for it than vice versa personally.
     
  4. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    Are they a broker if they are at the CBA ? Prob not. I wonder how that works since the website says all CBA spots are allocated and only non-majors are left. Hmmm they seem to indicate if others pull out CBA can reallocate to other borrowers.

    The very heart of this scheme allows a person with between 5% and 15% to borrow without LMI. All loans MUST have at least 5% savings. The Govt guarantee ends when the loans become 80% LVR and is regulated. So if you want to throw some equity in then why bother ? At 20%+ deposit you wont pay LMI anyway. No penalty is there ? It is NOT intended for people with more $$$. And you may even get a better deal with 20%

    You are referring to you having duties, legals and others costs PLUS 20% ? Otherwise your perceived 20% may be the sort that does qualify. And the scheme does have some other limits such as regions etc so just because your loan may work doesnt mean they wont run out of spots where you want to buy and with your lender.
     
    Last edited: 7th Feb, 2020
  5. Niche

    Niche Well-Known Member

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    I would disagree that they are forcing home buyers to buy a more expensive property.The reason it is only for first home buyers with less than 20% is because it is covering LMI which you don't need if you have a 20% deposit rather than to make someone buy a more expensive property.
    That is at least my interpretation anyway
     
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