The Finance Brokers Association of Australia (FBAA) has highlighted a key action brokers can begin taking now in order to have a better chance of securing new placements opening for the First Home Loan Deposit Scheme (FHLDS) on 1 July.
When potential borrowers are assessed by participating lenders, the institution will require a copy of the notice of assessment from the current 2019/20 year as evidence of their taxable income.
Under the scheme, eligible borrowers must have a taxable income of no more than $125,000 for individual applicants and no more than $200,000 for couple applicants.
“The places that were available in January have gone, and due to the wider knowledge of the scheme, I’d expect the new 10,000 will be taken within a few months," said FBAA managing director Peter White AM.
“This is the time to be working with borrowers to ensure they are ready to do their tax returns quickly, or they may miss out."
Figures from the first round of the scheme show the broker channel represented 44% of initial applications, increasing to 50% from February when non-major lenders joined and NAB opened to brokers.
Anita Marshall, managing director of Advanced Finance Solutions, has already helped many first home borrowers navigate the FHLDS process and reiterated White’s sentiment that being proactive is key.
“Mortgage brokers have a unique advantage because we are here to guide the clients through the process and help take the confusion out of buying their first home,” she said.
“I’ve found the scheme easy to use, but now my priority is making sure my clients are prepared so they can obtain a loan. It’s always a joy to work with first home buyers and share this monumental experience with them.”
