Large regional centres for the first home loan Scheme?

The new Loan Deposit Scheme allows eligible first home loan Scheme to secure a loan with a deposit as low as 5%.

The capital city price caps will apply to large regional centres with a population over 250,000, namely:

• The Gold Coast;
• Newcastle and Lake Macquarie;
• The Sunshine Coast;
• Illawarra (Wollongong);
• and Geelong, recognising that dwellings in large regional centres tend to be significantly more expensive than other regional areas.

Example of a $400,000 property and a 5% deposit versus a 20% deposit:

If you wanted to save a 20% deposit you'd need an extra $60,000 (but no LMI). This would equal around 33 months of mortgage repayments with a 5% deposit.

But with a 20% deposit your repayments would be noticeably cheaper, at $1,528 a month. That's $286 a month less.

Skipping the LMI means you buy the property faster and save $12,768 in LMI costs. But you'll pay $103,122 more in interest costs over 30 years with a 5% deposit.

The Benefits of Large Regional Centres

One of the most appealing aspects of the First Home Loan Scheme is the ability to purchase property in large regional centres. Here are some of the benefits of considering these areas for your first home:

1. Affordable Property Prices

Large regional centres often offer more affordable property prices compared to major metropolitan areas. This means first-time buyers can find suitable homes within their budget, making it easier to enter the property market. With the support of the First Home Loan Scheme, buyers can take advantage of these lower prices and secure their first home without the financial strain typically associated with city living.

2. Growing Communities

Many large regional centres are experiencing growth and development, leading to vibrant communities with a range of amenities. From shopping centres to recreational facilities, these areas offer a quality lifestyle that attracts families and young professionals alike. By purchasing a home in a growing regional centre, buyers can benefit from the positive changes occurring in their community.

3. Strong Rental Demand

Investing in a property in a large regional centre can also present opportunities for rental income. As more people move to these areas for work or lifestyle reasons, the demand for rental properties increases. This can provide first-time buyers with an opportunity to secure a property that may appreciate in value over time while also generating rental income if they choose to lease it out.

4. Lifestyle Advantages

Living in a large regional centre often means enjoying a more relaxed lifestyle compared to bustling urban environments. These areas typically feature beautiful parks, outdoor activities, and a sense of community that many people crave. First-time buyers can enjoy a higher quality of life by moving to a regional centre that offers a balance of work and leisure.

5. Government Support

With the First Home Loan Scheme, the government aims to promote homeownership in various regions, including large regional centres. This support encourages individuals and families to consider these areas for their first home purchase, knowing that they will receive assistance in overcoming the financial barriers associated with home buying.

Tips for First-Time Buyers in Large Regional Centres

If you’re considering taking advantage of the First Home Loan Scheme in a large regional centre, keep these tips in mind:

• Research the Area: Before committing to a property, research the regional centre thoroughly. Look into amenities, schools, transport options, and community services to ensure it meets your needs.
• Consult with Experts: Working with a mortgage broker can help you navigate the First Home Loan Scheme and find the best loan options for your situation. They can provide insights into the local property market and help you secure financing.
• Attend Open Homes: Take the time to attend open homes in your desired area. This will give you a better understanding of the local housing market and help you identify properties that suit your budget and lifestyle.
• Stay Within Your Budget: While it can be tempting to stretch your budget for your dream home, it’s essential to remain realistic about what you can afford. Stick to your budget to ensure you can comfortably manage your mortgage repayments.

The First Home Loan Scheme is a valuable initiative for first-time buyers seeking to purchase their first home, especially in large regional centres. With lower deposit requirements and government support, aspiring homeowners can take advantage of affordable property prices and vibrant communities. If you’re considering entering the property market, explore your options with the First Home Loan Scheme and discover the benefits of purchasing a home in a large regional centre.

Loans and Mortgages are the best Mortgage broker firm in Australia specializing in approaching financial services. We offer our services in Hobart, Launceston, Burnie, Devonport, George Town, Penguin, Smithton and near by areas of Tasmania. Our services are also extended all over Australia. For more details call us on 0403 803 470.