r/AusHelptobuy

My husband and myself got a detailed borrowing estimate from our mortgage broker who had little experience with the Help to Buy Scheme. After we gave him access to our accounts through a software program told us we could borrow the amount of money we required. Fast forward a couple of months to now, the interest rate has remained the same. we found a block of land and a suitable house design. The builder reccomended a mortgage broker to us who understands The Help to Buy Scheme and the lender requirements. We find out that our estimate is over 250k less but if we werent going through the HtBS we would be able to borrow the money we required but without the htbs, its pointless either way. We are heartbroken. 3 days away from the end of our cooling off period for the land and we can't proceed.

We've had lots of people think it was the 5% scheme and saying that we don't need to make sure our income is within a certain limit. One person insisted vehemently that the scheme has ended and no longer exists and actually tried to argue the point, not giving in (turned out they were looking at one of the old state schemes). Two people said, why would you want the government to own a part of the property, wouldn't you want to own it all? (To which the answer is obviously yes, we would love to own it all but not using the scheme we might die before we buy.) And probably the most shocking was a family member who thinks that using the scheme is some kind of sign of weakness and who compared us to a sibling, pointing out that they didn't rely on a scheme, they saved everything themselves, and basically made out like we were somehow leeching by using it. I've now given up telling anyone we are using it. I personally think the scheme is a great step forward in an imperfect housing market. Anyone had similarly unexpected reactions?

I'm exploring using the help to buy scheme and assumed (whether using it or not) I would purchase an existing property. However, I have recently come across an off the plan townhouse that is part of a larger building development close to where I currently rent (and my ideal scenario would be to stay in this area). However, from the way I am interpreting the information around Help to Buy, the property wouldn't be eligible as the expected completion date isn't for another twelve months. Logically that makes sense - I realise the government isn't going to hold a spot in the scheme for over a year for me, but it would also be incredibly risky to sign a contract without having all my financial ducks in a row (and I certainly am not even considering this). I'm just a little confused how the Help to Buy Scheme actually works for new builds if settlement must occur within 90 days of Help to Buy application approval. Curious to know if anyone has used for a new build and how the timeline worked.

It seems like the government contribution could make a much bigger difference when you're trying to qualify for a mortgage on one income. For anyone who's looked into it, did it actually make buying feel more realistic?

The government's equity stake in a Help to Buy property is expressed as a percentage rather than a fixed dollar amount which means the value of what's owed back on sale or buyout moves with the property's value. Whether that creates a situation where strong capital growth produces a significantly larger obligation to the government than the original contribution represented, how a market downturn affects the arrangement and whether there are scenarios where the equity share creates a practical constraint on decisions about the property are all questions that seem worth understanding clearly before committing to the scheme. Would love to know how people here who've thought about the long term mechanics have processed that uncertainty.

Doing a land purchase and build contract through HtB and CBA has been an absolute nightmare.
Settlement on the land is the 21st and I still don't have final approval. They've had both contracts for a week, and after hounding me all day Friday to request a finance extension (despite telling me it should be done by Friday afternoon, Monday morning at the latest, and the extension is a "just in case"), they spent most of this afternoon dodging my calls only to tell me it still wasn't done, and that when it is (first thing tomorrow, pinky promise 🙄) it'll have to go to HA for final final approval. But apparently there's no need to panic and extend the settlement because it'll be "escalated".
I'm a FHB so I have no idea what I'm doing, but is buying a house normally this much of a clusterfuck? I feel like I'm taking crazy pills. I was prepared for the process to be overwhelming and stressful, especially being a new build, but if things keep going at this rate I'll have an aneurysm before the bloody slab is down...

EDIT: Final approval signed off and sent to HA this afternoon. Phew.

Hi All,

I did this 6 months ago and was able to answer a fair few questions. Thought I’d offer again.

If you have any questions that you’d like to have answered regarding the HTB scheme, particularly with CommBank feel free to post below or send me a DM. Im happy to assist the community.

I’m a lender with CommBank so have first hand experience with the HTB scheme.

Note - I won’t be able to assist with running figures, looking at your individual applications etc. You’re best to book an appointment via Netbank to get assistance with this.

FHB currently looking at few properties and engaged a conveyancer to do a preliminary review based on some specific things I was looking at. Conveyancer came back with (what I thought was pretty detailed info for a preliminary report). My question is this-

If I decide to go with a detailed report for the other properties what are the things I can expect the conveyancer to do on my behalf? Getting government reports and land titles? Negotiating with the bank? Placing an offer to the REA? Auction? If the preliminary report was so exhaustive, what does a detailed report look like? Apologies if the question seems silly but I’m new to this 🙂

Hi guys, I brought using the help to buy scheme and am concerned about job security in the next 2-3 years. Do we think it’s possible to approach the bank about buying out the government portion with the intention of then renting out my flat like an investment property? I can’t afford repayments of the full amount but I really don’t want to sell. What options are out there?

Thanks

Just wondering what kind of condition they are willing to allow you to purchase. A lot of the places in the area I'm looking need work. We are avoiding anything with major structural issues, like needing restumping or leaks etc. But are they happy to let you purchase if the place needs a fair bit of doing up outside of these kind of major structural issues? Anyone have any examples of the kinds of condition that HA consider good enough even though the house needs some work?

I read that you can now use a broker with the Help to Buy Scheme if you are borrowing from Bank Australia. We think this might be a good option for us because while I'm on a salary, my partner is a sole trader (been in business about 4 years). Has anyone done used a broker with the scheme with success and does anyone recommend a specific broker?

I can see the appeal of getting your foot in the door, but there’s also the risk of outgrowing the place sooner than expected. Keen to hear from people who actually went down the smaller-home route and how it worked out for them.

When I was 23, My ex and I built a house in 2007. We divorced in 2017. He told me I was not on the deed or mortgage. Now 3 days ago I get a call from him saying the house is going in foreclosure and he is trying to do a loan modification and needs my signature! It includes a partial claim of 12000. I want him to buy me out but she won’t give authorization for me to talk to the bank directly! What do I do!

As above. Trying to decide whether using Home-In conveyancing/app is a good idea or not. Does the lower price go with lower service quality/reliability etc? or just a nice discount due to the connection they have with CBA. Your thoughts are appreciated, especially if you've used it or know someone who has.

I know the current income cap is $103k for a single applicant or $165k for joint applicants, but what happens if you get a major promotion a couple of years after buying and your taxable income goes well above the threshold?

Do you eventually have to start buying back the Government's equity, or is there some sort of grace period?

Hi everyone, my husband and myself are in the process of signing a contract for unregistered land and we searching around for a house to build. I can't seem to find any clear information regarding the need for boundary fencing to meet the help to buy scheme requirements and if it needs to be added as a provision in the build contract or if we can add fencing after we move in. Does anyone know what the ruling is regarding this?

Can I purchase land and a modular home (class 1a) under help to buy? Not a land package, separately

Assuming I have been told that I can buy up to 920k with the scheme, would it be silly to settle for something closer to 700k?

I'm such a chicken when it comes to these large financial decisions. Head says that it would be stupid to not take advantage of this but my heart gets scared at the thought of owning such an expensive property.

Those who have gone through something similar, please share your thoughts and experience.

If you’ve used the scheme - what price did you purchase your property for and what were your total out of pockets including the 2% deposit when all was said and done?