Buyer’s Aid: How Homebuyers Can Get a ‘Good’ Loan Before the October Deadline | Personal finance | Finance
Ms Flynn said: ‘The home must be substantially complete and have received a New Home Guarantee by December 31, 2022. You must also have received the keys to your new home by 6 p.m. on March 31, 2023 to remain eligible for the equity loan. .”
However, the application process for the Help to Buy equity loan itself is quite simple.
The first thing to do is to check eligibility. Applicants must be:
- 18 or more
- A first buyer
- Able to pay fees and interest payments
The next step is to check if the property is eligible for the scheme. The property must be new construction, must not have been previously lived in, and must be sold by a registered home purchase assistance builder. Those planning to live with someone else will need to apply jointly.
Once this is determined, Ms Flynn said: ‘You will need to book a new build property with a builder registered with the scheme. You can then apply online through a Help to Buy agent in your area.
“You will be asked to fill out a property information form so you can provide your financial information, as well as your personal information. Once you have received permission to proceed, you can then apply for a mortgage and make progress your request to the exchange of contracts.”
How does the diet work?
The equity loan must be repaid in full at the end of the term of the loan, or when the person pays off their mortgage or sells their house.
Ms Flynn said: ‘People can repay part or all of the equity loan at any time, but they will need to get a market valuation report from a licensed surveyor when they make a repayment.
On repayments, Ms Flynn said: “Repayments are based on your equity loan percentage and the market value of your home at the time of repayment.
“Remember that from the sixth year of your loan, you will start paying interest. This means that partial payments often reduce the amount you owe, however, any partial payment you decide to make must be at least 10% of the market value of your property at that time.
What other government assistance is available for homebuyers?
For those considering buying a home after the purchase assistance applications have closed, there are other government-led programs available to support them.