In just a few seconds, you can find out some data about first home buyers in your suburb.
Click this link, type in a postcode and you’ll discover the average profile of first home buyers who participated in the First Home Loan Deposit Scheme during the first six months of 2020.
Looking at the national data, for 6,814 borrowers, the average profile was:
Age = 25-29
Household income = $91,000
Purchase price = $400,000
Loan-to-value ratio = 95%
Debt-to-income ratio = 4.3
Normally, when someone buys a property with a deposit of less than 20%, they have to pay lender’s mortgage insurance (LMI), which can cost thousands of dollars. But under the First Home Loan Deposit Scheme, the government acts as a guarantor, which allows eligible borrowers to put down a deposit of just 5% and avoid LMI.
The First Home Loan Deposit scheme is open to only 20,000 first home buyers this financial year, with at least half the spots reserved for people who are building or buying new homes.