Savings needed for FHB

Discussion in 'Loans & Mortgage Brokers' started by Cousinit, 7th Jul, 2020.

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  1. Cousinit

    Cousinit Well-Known Member

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    Ok, my daughter is 23 and works in accounting and has 20k in savings.

    If she wants to try and buy a unit for say 400k as a ppor and avoid lmi and qualify for the fhb incentives then she will need about 100k of savings?
     
  2. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    Hi Cousinit
    She may be able to do 5% deposit and have lmi waiver. Spots for that have just been released.
    Also, there will be stamp duty waiver being a FHB seeing you are in Victoria.

    Also, is she a Chartered Accountant by any chance?
     
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  3. Cousinit

    Cousinit Well-Known Member

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    She is not yet a chartered accountant but working on it. I think she has done 3 of the five papers or something like that.

    Thanks for your reply.

    Probably best to save a bit more?

    Reading up on the FMB grant that is available. I understand it is for new properties only?
     
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  4. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    No need to wait for her to become a chartered accountant to avoid LMI.

    As a first home buyer she'll likely qualify for the First Home Buyers Low Deposit Scheme (FHLDS). A $400k purchase price also qualifies for this.

    What this means all she needs is a 5% deposit (must be genuine savings, over the last 3 months) plus some basic purchase costs, about $4,000. This can be applied to existing properties.

    The lenders available under this scheme are somewhat limited, but there's still a strong range of lenders with very competitive rates and products.

    Essentially a few thousand more and she's ready to go for a $400k price point. This shortfall could be a gift or saved during the settlement period.

    Overall this looks quite straight forward.
     
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  5. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    What Pete posted above :) should be easy to do. As spots are limited if she wants to buy, she should look at pre approvals soon to secure a spot for FHLDS
     
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  6. Cousinit

    Cousinit Well-Known Member

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    Thank you for the detail in your reply. Much appreciated.

    I was not aware of the FHLDS.
     
    Last edited: 7th Jul, 2020
  7. Richard Taylor

    Richard Taylor Well-Known Member

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  8. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    The CBA and NAB sold out their allocations very quickly in January. It wasn't a big deal for the second tier lenders, they still had places available until this weeks new allocation.