We’ve quickly summed up the Government initiatives that could help you achieve your new home or investment property goals. Plus, we take a look at interest rates and what to expect when applying for a loan over the coming months.
Here is everything we know so far about the Victorian Government’s Initiatives if you purchase between now and 30th of June, 2021.
When Buying a Home Off The Plan
Buying a home off the plan has many initiatives to save on stamp duty. If you are looking to purchase an off-the-plan home, and it is valued at less than $1 million, you could potentially have 50 per cent of your stamp duty costs waived.
Depending on the purchase price and your eligibility, this discount could save you up to $27,500 in stamp duty costs.
When Purchasing an Existing Home
Purchasers of existing homes could potentially receive up to a 25 per cent waiver from stamp duty costs.
Depending on the purchase price and your eligibility, this discount could save you up to $13,750 in your stamp duty costs.
If You’re A First Home Buyer
If you’ve been saving, but don’t quite have the 20 per cent deposit needed to buy a home, the $500 million Victorian Homebuyer Fund might just get you on the property ladder.
Reducing the size of the deposit required by the first-time buyer for new properties allows for a contribution to the purchase price in exchange for an equity interest in the property – a ‘safety net’ that provides additional security against the borrowings on your first home.
Plus, the $20,000 First Homeowner Grant has been extended for those looking to buy off the plan or build a new home in regional Victoria.
Interest Rate News
The latest Reserve Bank of Australia (RBA) meeting announced the official cash rate target from 0.25 per cent to 0.1 per cent. Rate reductions may also accelerate house prices as the lower rates also reduce the cost of borrowing funds.
What to Expect When Applying For A Loan?
When buying a property in this new ever-changing post-COVID landscape, it is critical to understand how the changes to the government initiatives, as well as the differing lender policies may affect your property buying goals. As such, we do recommend that you do your research and get advice from an experienced Mortgage Broker who can help you secure the best home loan for your unique circumstances.
Contact BCP Finance today to find out how the team can find the right lender and the best loan for you.
Brett Hartwig founded BCP Finance in 1995. Brett has over 40 years of banking and finance experience and has grown BCP Finance to be an integrated arranger of Residential, Commercial, and Corporate financing solutions. BCP Finance has recently partnered with Brad Teal Real Estate to offer clients access to independent finance solutions as part of the Teal Assist menu of services.