Government Initiative Boosts Bracken Ridge Popularity Among First-Home Buyers

It looks like Bracken Ridge is quite popular among first-home buyers, thanks to a boost provided by the government’s First Home Loan Deposit Scheme, the latest research by the REA Group says.

The latest data reveal that in terms of inquiries for houses from first-home buyers, Rochedale South was the top suburb. First-home buyers also flock to Springfield Lakes,  Bracken Ridge, Morayfield, and Forest Lake to shop for their dream home. Meanwhile, Brisbane City and Toowong had the most inquiries for units, followed by Taringa, Nundah, and West End.

Consequently, a rise in first-home buyers have been observed in Brisbane, an increase of more than a third in January from the same month in 2019, data from said.

First Home Loan Deposit Scheme was introduced on 1 January 2020, and since then, there have already been more than 700 people who gained pre-approved place in First Home Loan Deposit Scheme (FHLDS) in Queensland. Almost 6,000 of the 10,000 places have been guaranteed nationwide, whilst another 3,000 places have moved to the pre-approval stage.

Data from the Australian Bureau of Statistics also seem to reflect the interest generated among first-home buyers by the First Home Loan Deposit Scheme, even before the scheme officially started.

As revealed by the Australian Bureau of Statistics, the number of first-home buyer loan commitment have risen 6.2 percent in seasonally adjusted terms in December 2019. The annual percent change for owner occupier first home buyer commitments was also up 21.3 percent from December 2018.

About First Home Loan Deposit Scheme

The First Home Loan Deposit Scheme is an Australian Government initiative that aims to help eligible first home buyers purchase a home with a deposit of as little as five percent. The scheme allows NHIFC to guarantee part of the first-home buyer’s home loan from a participating lender, beginning 1 January 2020.

National Housing Finance and Investment Corporation (NHFIC) has already released 10,000 First Home Loan Deposit Scheme places and another 10,000 will be made available from July 2020.

The loan guarantee is subject to criteria including a taxable income of up to $125,000 per year for singles or a taxable income of up to $200,000 per year for couples; incomes would be assessed for the financial year preceding the one in which the loan is entered into.

The list of participating lenders can be found here.