However, just meeting the eligibility for the 5% home deposit Scheme is not enough as each participating lender will also assess you as a borrower and they will reject your application if it does not fit into their cookie-cutter eligibility requirement.
And this is what happened to Ben!
The story: Turned down initially
Ben was an eager first home buyer looking to take full advantage of 5% home deposit scheme.
He knew that he needed at least a 5% deposit to qualify for the scheme – which he did not have yet.
Fortunately, his brother Troy was happy to gift him the money.
After going through the Scheme eligibility requriements, he knew he met all of them.
It made sense since CBA was one of the participating lenders under the Scheme.
Unfortunately, CBA knocked him down, and Ben was left wondering why.
All hope is not lost
Feeling hopeful that a mortgage broker might be able to help him with his predicament, Ben called Home Loan Experts to enquire about the possibility of getting approved for the first home buyer scheme.
He was connected to Amine Berrada, a mortgage broker with a knack for understanding how banks view home loan applications, having worked for many years in one of the major banks himself.
Talking with Ben, Amine was quick to establish that he fulfilled all the criteria for the scheme sans one!
Ben fulfilled all the criteria for the First Home Loan Deposit Scheme, namely;
He is an Australian citizen (not a Permanent Resident).
He is a first home buyer.
He is buying an owner-occupied property, i.e. a place to live in.
He is earning an annual income of $115,000, which is below the $125,000 p.a threshold.
He had his Notice of Assessment(NOA) for 2017 – 2018 which is required to verify said income.