It is finally official. The Government has established a new policy called the mortgage guarantee scheme, which is aimed to help first home buyers enter the property market.
The mortgage guarantee scheme will offer first home buyers the opportunity to purchase a property with just a 5% deposit subject to eligibility. The scheme will essentially boost up to 10,000 first home buyers each year on low and middle incomes. The scheme was announced ahead of the Federal Election in May 2019.
Here are the property price caps:
| State/Territory | Capital City & Regional | Rest of the State |
| NSW | $700,000 | $450,000 |
| VIC | $600,000 | $375,000 |
| ACT | $500,000 | – |
| QLD | $475,000 | $400,000 |
| WA | $400,000 | $300,000 |
| SA | $400,000 | $250,000 |
| TAS | $400,000 | $300,000 |
| NT | $375,000 | – |
The mortgage guarantee scheme will be eligible to singles earning a taxable income of up to $125,000 per year and couples earning less than $200,000 per year. The acquired loans must be for owner-occupiers paying principal and interest only.
The data sourced by CoreLogic, determine that the Melbourne median property price in September 2019 was $635,000. The mortgage guarantee scheme is ultimately there to enable first home buyers to purchase a modest priced home.
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While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more, please contact us. We welcome the opportunity to assist you.
Nov 2019
