While the vast majority of Australians have been badly affected by the coronavirus pandemic that has gripped the country and the world in the last two-and-a-half years, it was frontline workers who were hit hardest. These nurses, teachers, police officers and other public servants kept the country going during the worst of COVID-19 and continue to perform incredible services to our society as a whole.
In recognition of these frontline workers, the New South Wales government is providing the NSW Housing Scheme – a program designed to help eligible individuals get a foot on the housing ladder and make meaningful steps towards home ownership. Under the scheme, frontline workers could find themselves benefiting from a 2% deposit – something that would fundamentally improve access to properties in Sydney and elsewhere across the state.
A Significant Discount on the Standard Housing Deposit
This is very interesting indeed for NSW’s frontline workers. Typically, home buyers in New South Wales would need to put down 20% of the sale value of the property as a deposit. It is possible to purchase a home with a smaller initial downpayment, but lenders will apply Lenders Mortgage Insurance (LMI) to protect themselves until the buyer builds up enough equity in the property. This can make the transaction even more expensive for homebuyers.
Under the NSW Housing Scheme, qualifying buyers will not only be able to purchase a property with a 2% downpayment, but they will also avoid paying LMI at the same time.
Money Set Aside in the Upcoming NSW Budget
New South Wales premier Dominic Perrottet announced that $780.4 million would be earmarked for the Housing Scheme in the next state budget. This will enable the NSW government to provide up to a 40% equity stake for new home purchases, providing further assistance for those who need it most.
“We know housing affordability is becoming a real challenge,” Perrottet said on June 18, 2022. “We want to make sure you have that opportunity. We know home ownership is crucial to growing wealth, to growing the opportunity that people right across our state deserve”.
The Initial Trial Phase of the Scheme
At the outset of the Housing Scheme, assistance will be made available to 3,000 eligible frontline workers across the state of NSW, as well as to single-parent families and single individuals aged 50 and above. The scheme is still in the trial phase, and progress will be monitored closely over the next two years – beginning in January 2023. However, it is expected that the scheme will be extended to offer support to other frontline workers in the future.
Under the trial scheme, anyone eligible for assistance may be able to make a purchase on a house worth up to $950,000 in metro areas such as Sydney, Ultimo, Pyrmont and other locations. In regional areas outside of these metro population centres, purchases made on the scheme will be restricted to $600,000. In both cases, the assistance could be the helping hand that NSW residents need to fulfil the important life milestone of home ownership.
NSW treasurer Matt Keen agrees with this. “This is about helping people reach their goal and live their dream,” Kean said.
Gaining Understanding and Insight into the NSW Mortgage Landscape with Sydney Brokers
Schemes like this one are certainly exciting and can provide a crucial stepping stone for previously disenfranchised individuals as they seek to purchase a property and achieve the stability that comes with this. However, the mortgage and home loan landscape can still be a confusing one in Sydney and elsewhere in. New South Wales.
To make sure you are moving in the right direction and you achieve the right deal on your property loan, it’s important to talk with the experts. This will help you to better understand the home loan and mortgage landscape here in NSW so that you can make the right decision in the market.
Here at Sydney Brokers, we help our clients do exactly that. Reach out to our team today to learn more about the mortgage options available to you and how you can find the best loan product for your specific situation.
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