While the answer will very much depend on your individual situation and will take into account important factors such as financial stability and job security - here we take a look at why now could be a window of opportunity for some first home buyers.
The Government's 2020 First Home Loan Deposit Scheme
The Government’s First Home Loan Deposit Scheme allows first home buyers to pay a deposit as little as 5%, while avoiding lenders mortgage insurance (LMI). Most banks and lenders require a minimum deposit of 20% of the property’s value for the borrower to be exempt from LMI. The scheme allows first home buyers who can’t reach this threshold to take out a loan if they have saved at least 5% of the value of the property they are buying. The government will underwrite the loan so that borrowers do not have to pay LMI. Read more for further information including eligibility criteria.
Don’t qualify for the scheme? Check out the First Home Owner Grant.
First Home Owner Grants are subsidies that are set up by individual states and territories to help you buy your first home through a once-off lump sum payment. Exactly how much you will receive depends on where you are buying as each state has different rules and restrictions. You can read more about First Home Owner Grants here.