Home own­er­ship dreams now com­ing true

Central and North Burnett Times - - MONEY - Pic­ture: Si­mon Bullard SO­PHIE ELSWORTH

AS­PIR­ING first-home owner Philip Reuter said he had vir­tu­ally given up on his dream to own his own place.

The39-year-old and his fi­ancee, Chris­tine South ,25, both work as high school­teach­ers and thought af­ford­ing their own prop­erty seemed too far-fetched.

“I’ ve been try­ing to get a de­posit for years and it seemed un­re­al­is­tic to buy a house be­cause I’ d been mov­ing jobs ,” he said .“But we’ ve set­tled down now and man­aged to save $50,000 in just12­months.”

The cou­ple earn a com­bined salary of $140,000 and are look­ing to buy a prop­erty in Camp­bell town, in Syd­ney’swest.

The roll out of the Fed­eral Gov­ern­ment’ s First Home Loan De­posit Scheme on Jan­uary 1 changed ev­ery­thing for them, en­abling them to fi­nally be able to buy, MrReuter­said.

Un­der the scheme, bor­row­ers only need a de­posit of 5 per­cent and the Gov­ern­ment gives them a spe­cial guar­an­tee that al­lows them to avoid the ex­pen­sive len­ders’ mort­gage in­sur­ance. Bor­row­ers who don’ t have a 20 per­cent de­posit typ­i­cally have to pay L MI, which can cost thou­sands of dol­lars.

The first 3000 spot son the scheme were of­fered by the Com­mon­wealth Bank and Na­tional Aus­tralia Bank from Jan­uary 1 and filled within a cou­ple of weeks. An­other 7000 be­came avail­able from Fe­bru­ary 1, in­clud­ing 2000 spots with the big two banks and an­other 5000 with 25 small­er­len­ders.

Mr Reuter has reg­is­tered his in­ter­est with G& C Mu­tual Bank, which is part of the scheme, and he hopes to buy a prop­erty in the $600,000 range. “This has al­lowed us to buy a home at least one or two years sooner ,” he said.

G&C Mu­tual Bank CEO Dave Tay­lor said it had al­ready seen hun­dreds of peo­ple ex­press in­ter­est.

“We are hav­ing very strong de­mand and if peo­ple want to get ac­cess to this they need to ap­ply very quickly,” he said.

“Ap­pli­cants need ev­i­dence of their in­come, an in­di­ca­tion of the prop­erty they want to buy and ev­i­dence a

5 per cent de­posit to be el­i­gi­ble for thescheme.”

The Com­mon­wealth Bank’ s gen­eral man­ager of home­buyer, Jason Chan, said it was “over­whelmed by the re­sponse from first-home buy­ers who ap­plied for the scheme in Jan­uary”.

Na­tional Hous­ing Fi­nance and In­vest­ment Cor­po­ra­tion chief ex­ec­u­tive of­fi­cer Nathan dal Bon said hope­ful ap­pli­cants should be aware more spots would be­come avail­able mid-year. “Given the scheme runs on a fi­nan­cial year, a fur­ther 10,000 places will be avail­able from July,” he said.

READY TO BUY: Chris­tine South and Philip Reuter will take ad­van­tage of the Fed­eral Gov­ern­ment’s First Home Loan De­posit scheme.

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