Home loans with a 2-handle, via the fire-breathing dragon:
Source: Broker channels
This is part of the reason I think the First Home Loan Deposit Scheme will be fully subscribed.
Consider the following:
-5 per cent deposit with no LMI
-mortgage rates from about 3 per cent (and futures markets pointing to lower rates)
-unemployment rates in Sydney and Melbourne well below 5 per cent
-low and steady inflation
-stamp duty grants available in some jurisdictions
Buying a first home isn't for everyone, but it's hard to imagine the stars aligning any more so than this.
The scheme is ostensibly designed to be 'first-in-best-dressed', though the government has previously indicated that the available places could be extended if required.
The prudential regulator today confirmed that it will apply a lower capital requirement for FHLDS loans given that the Government guarantee is a valuable form of credit.
