First Home Loan Deposit Scheme

L[Deactivated] on 25/08/2019 - 19:13

Little known about the scomo home loan scheme that starts in January 2020.

From what I know the number of first home buyers are much higher than 10,000 in any year and there may be a crowd of buyers lining up in Jan 2020 to use this scheme.

1) It looks like it may be first comes first served (not sure though), and if that's the case would it be good to approach the banks say in November or December to apply for a pre-approval or something?

2) Is it even worth the increased interest rate that maybe associated with 95% LVR?

Financial Home Loan

Comments

  • askme69 on 25/08/2019 - 21:45
    +1

    It's a BIG Ponzi tht they will do whatever they can to keep going.

    Problem is they can't it will collapse and the last in (You) will suffer the most.

    • [Deactivated] on 25/08/2019 - 21:52

      I had assumed it being better than paying rent

      • djkelly69 on 25/08/2019 - 23:21

        You know what they say about assuming…

    • whooah1979 on 26/08/2019 - 06:43
      +1

      Nothing is going to collapse.

      We had a tiny correction, but this is turning around now. Prices may be going up in no time and things will be all good again.

      • Bid Sniper on 26/08/2019 - 08:19

        analysts still think Sydney prices are 40% overvalued

        • Baysew on 26/08/2019 - 09:25

          Which analysts and when?

            • Baysew on 26/08/2019 - 10:21
              +1

              @Bid Sniper: Article written August 30 2017 now with this update -

              UPDATE: Since this article was published John McGrath has clarified his comments about Sydney’s “overvalued” property market, saying: “The Sydney market is most of the way through its sales cycle and very near the top of its cycle. My view is there is no bubble, and no chance of a 40% correction.”

      • askme69 on 26/08/2019 - 08:36

        It will only go up as long as the OP is willing to enter the market and so on. It cannot and will not continue.

        My nephew purchased last September, he lost his $60k deposit already in the house price fall. He saved for 6 years for that and it's gone in a flash. More too come.

        • whooah1979 on 26/08/2019 - 08:47
          +1

          How did he lose the deposit? Did he sell the property at a loss?

  • tsunamisurfer on 25/08/2019 - 22:07

    The amount you can put in is too little and therefore the benefit also little.

    However, the market is dropping which is your best friend right now.

    • [Deactivated] on 25/08/2019 - 22:18

      Agree! The only benefit may be that the rent money put to some interest payment, and you'd be at the mercy of market for any gain in property value.

  • ginormousgiraffe on 25/08/2019 - 23:12
    +3

    I highly recommend against borrowing with an LVR of 80% or above, simply because the first few years of your loan are hardly eating into the principal

    • HighAndDry on 26/08/2019 - 10:13

      And there are (apparently little-known) clauses in mortgage loan documents which say that if the LVR exceeds any level because of falls in the property value - say you borrowed $900k against a $1mil ppty but the value falls to $950k, the bank can foreclose on the loan unless you inject that additional shortfall.

      If you're already at a high LVR and not paying down the principal, any changes are going to be very dangerous.

  • dcep on 26/08/2019 - 10:27
    +2

    For those that say housing will never crash.

    History never lies. You just haven't lived long enough to see it happening.

    Or you can keep chanting "This time it will be different"

    • whooah1979 on 26/08/2019 - 11:17

      You just haven't lived long enough to see it happening.

      When was the last time Australia experienced a property crash?

  • Simon Dooley on 26/12/2019 - 10:46

    Just Pm’d you about our earlier conversation

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