Market Essentials - November 2019
/This Month in Review
October saw the third interest rate cut since June with the Reserve Bank cutting official rates to a new record low of 0.75%. The underlying cash rate in Australia has halved since June.
The Federal Government also announced eligibility details for its First Home Loan Deposit Scheme. Under the Scheme, up to 10,000 eligible first home buyers each year will be able to access a government-guaranteed loan from 1 January 2020.
The loan amount will be the difference between their own deposit and the 20% deposit required by lenders to avoid lender’s mortgage insurance.
The cost of this insurance varies depending on the deposit and the size of the loan, but it can cost borrowers $10,000 or more on a property worth $500,000 with only a $50,000 (10%) deposit.
To be eligible for the Scheme, first home buyers will have to raise at least 5% deposit themselves and be buying a property in an Australian capital city that is underneath the following threshold values: Sydney $700,000, Melbourne $600,000, Canberra $500,000, Brisbane $475,000, Perth $400,000, Adelaide $400,000, Hobart $400,000 and Darwin $375,000.
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The Market Essentials Report is compiled by Buyside on behalf of Loanscape. Founded by Josh Masters, Buyside are registered buyer's agents with on the ground expertise in the Sydney and Brisbane property markets.
