Welcome to this month’s Dominion Finance newsletter. You may have noticed it is a bit late this month. This is due to the RBA meeting later in the month as part of their new arrangement of only meeting eight times per year instead of eleven to determine the cash rate.
As expected, the cash rate has stayed the same as the RBA understandably takes a conservative approach to their fiscal policy.
Therefore, as the market has been fairly static with not a lot of movement in house prices or incentives by the banks for new business, I thought I would talk about the deals for first home buyers, where we are seeing an increase entering the market.
Most of our readers of this newsletter would already have a home loan, however for your family or friends who are thinking of purchasing their first home, this information could be beneficial to them.
It is a good time to be a first home buyer, with several national and state-based government schemes offering a helping hand. Let’s explore some key options:
National Schemes:
- First Home Guarantee (FHBG): This scheme allows a 5% deposit with the government guaranteeing the difference (up to 15% of the property value), eliminating the need for Lenders Mortgage Insurance (LMI). Income caps and property price limits do apply.
Buying in Canberra?
The ACT has the ACT’s Home Buyer Concession scheme. This scheme removes or reduces the stamp duty payable on the purchase . Check the ACT Revenue Office website (https://www.revenue.act.gov.au/home-buyer-assistance/home-buyer-concession-scheme) for details on eligibility
What You’ll Need to Qualify:
- Income Requirements: Your income must fall below a set threshold for each scheme.
- Deposit Savings: While the FHBG allows a 5% deposit, lenders may prefer a higher deposit to strengthen your application.
- Genuine Savings History: Demonstrate a good savings record for your deposit.
- Occupation & Employment Status: Stable employment strengthens your application.
NSW, VIC, QLD State-Specific Schemes:
- New South Wales (NSW): Look into the New Home Grant (replacing the First Home Owner Grant) for potential assistance with upfront costs. Eligibility and grant amounts depend on property type and value (https://www.revenue.nsw.gov.au/grants-schemes/first-home-buyer).
- Victoria (VIC): The First Home Owner Grant (FHOG) can offer financial support for established or new homes under specific property value caps (https://www.sro.vic.gov.au/first-home-owner).
- Queensland (QLD): The First Home Owner Grant (FHOG) can provide a one-off payment for established or new homes, with additional support available for regional purchases through the Regional Home Building Boost Grant (https://qro.qld.gov.au/property-concessions-grants/first-home-grant/).
Ready to Take the First Step?
Navigating these schemes can be confusing. Here at Dominion Finance, we can help you understand your eligibility for national and state-based programs, compare loan options, and guide you through the application process.
Car Finance
We are thrilled to announce the newest addition to the services we provide for our clients: car loans! As your trusted brokers, we understand that financial decisions are deeply personal and require tailored solutions. With our expertise and knowledge of your financial situation, entrusting us with your car loan needs ensures a streamlined process from start to finish. By utilising our existing relationship and insights into your financial profile, we can efficiently navigate the intricacies of securing the ideal car loan that aligns perfectly with your goals and budget. Let us navigate the complexities of financing so you can focus on finding the perfect vehicle to suit your lifestyle. With competitive rates, flexible terms, and personalised guidance every step of the way, securing the perfect car loan has never been easier!
Until next time.
At its meeting today, the Board decided to leave the cash rate target unchanged at 4.35 per cent. Inflation continues to moderate but remains high.
Recent information suggests that inflation continues to moderate, in line with the RBA’s latest forecasts. The headline monthly CPI indicator was steady at 3.4 per cent over the year to January, with momentum easing over recent months, driven by moderating goods inflation. Services inflation remains elevated, and is moderating at a more gradual pace. The data are consistent with continuing excess demand in the economy and strong domestic cost pressures, both for labour and non-labour inputs.
The information provided in this newsletter is general in nature and does not take into account your personal circumstances, needs, objectives or financial situation. This information does not constitute financial advice. Before acting on any information in this newsletter, you should consider its appropriateness in relation to your personal situation.
