The First Home Loan Deposit Scheme relaunches July 1, 2020, with new requirements: applicants must have a Notice of Assessment tied to PAYG summaries issued around June 30. Timing could cause missed allocations of the 10,000 available spots. CBA and NAB plan to assess and reserve spots differently.
Chapters
Once again, just a quick little update to give you some information. I know the first home loan deposit scheme is due to kick off again on the 1st of July 2020 and we want to make sure that you are completely covered and ready for it. So that means knowing what the lenders need now, there has been a change for round two and that means that legislation or the government has asked that those who are going to be applying and getting the first home loan deposit scheme actually have their notice of assessment. Now to have your notice of assessment you usually have to wait for your PAYG summary which comes out on the 30th of June and depending on your employer, they may take a little bit of time for that to get to you. So there's timing issues here that could mean that you could miss out on on one of the allocated spots. Now rest assured there is going to be 10,000 spots again, but they are going to go quicker. Now if you recall what happened in January 2020, only NAB was actually given the right to have the as one of the big fours, have the lending or have the applications. CBA then came on board very quickly after that. So for the first month really there's only those two big lenders that were lending and then another 25 regional smaller base lenders came on in Febr and you know, the allocation of the 10,000 spots was taken up quite quickly. Now that all the banks are geared up for this and they know the process, they are going to be very, very ready and prepared to do this. Now once again, NAB has the jump on CBA and for a completely different reason and it just comes down to how they are going to assess your application. So for us in Investors Choice Mortgages, what we're doing at the moment as we're taking people's initial inquiries about, you know, do they qualify for, you know, stamp duty concessions or for the first time loan deposit scheme or for even mortgage insurance concessions. Because obviously some of the first home loan deposit schemes, the price amount that you're limited to to buy for and your income could actually stop people on being able to get that. So you know, there's also mortgage insurance concessions that you can get, there's stamp duty concessions, but also we have that home builder which been thrown into the mix as well. Now I'm going to talk about that in the next couple of days, but for today I want to talk to you about the difference in the lenders. So CBA is going to require you to have at this stage the notice of assessment, which means it could be two to three, four weeks out before you're actually going to get that and get your tax done. However, NAB is actually going to run a completely different process and they want you to get your application in. Now when they actually accept your application and assess your application and say yes, they're happy for you to have a pre approval. They will then reserve you one of those 5,000 spots that the two big lenders have been allocated. Once you've been reserved that spot, go out, have a look for your property, see what you can, you can do in finding a property and securing a property in that period of time. Obviously, Investors Choice Mortgages, we're going to really help you with that. You can have a strategy call with me where we look at your borrowing capacity and where you can afford to buy and I give you access to RP Data Professional which is usually $150 a month. With that you can do your own valuations and own searches and I'll teach you how to do that as well in our strategy session. So we really want to help you find that property and secure it. It's not until you actually found that property that NAB requires you to have that notice of assessment. So this is going to give you a 2 to 3, 4 week head start on all those others that have gone and got pre approval or waiting to get pre approval with cba. So just a little tip there. As for the other 25 lenders, we're not too sure how they're going to assess this notice of assessment vers versus getting your pre approval and allocating and getting you that reserve spot first. But at the moment, as you know, we're going to be monitoring that, keeping on top of it. So if you think that you would like to apply for the first time loan deposit scheme, if you don't know and you're wondering what your borrowing capacity is because you may be able to afford more than that and it's in your better interest to buy something in a better quality place that's going to get you to your goal sooner. Then come along and give us a call, have a chat to our expert mortgage brokers and we would love to be able to assist you on that journey. So just book a time@investorschoice.com bookatime and get on a call and I'll also, for those people who do do that call, give you access to my first home buyers course worth $495. So we are here to help. Please, you know, take note of all the information that we're going to be giving you over the next few weeks about the first time loan deposit schemes. Things do change. Hopefully CBA comes into line with nab, but at the moment, nab, we can take your applications and get your pre approval in place and so that you're ready and you've got one of those allocated spots. So just be in the know. Anyhow, until next time as always, here is to your property success. Bye for now.
