When you don’t know the answer to your questions about mortgage insurance, this is what you need to know about mortgage security
A new government initiative will offer renters and first-time home buyers access to an online mortgage insurance product that will let them access a range of products and services that could save them thousands of dollars in their first home purchase.
The Federal Government announced the online mortgage guarantee and mortgage insurance program in September, and has since expanded the program across Australia, starting with the Federal Government’s first-home buyer scheme.
The mortgage insurance insurance program is being rolled out by the Commonwealth of Australia Mortgage Guarantee Program (CFGMP) and its two major sub-regions in Victoria, Tasmania and Western Australia.
The CFGMP will roll out the program in Victoria over the next few months, with a target of the program being operational by the end of 2019.
According to the CFGMB, its purpose is to ensure that those who apply for a mortgage or who obtain a mortgage through the National Mortgage Scheme can get the best possible mortgage guarantee.
“This new product, which we believe will make it easier for borrowers to access a mortgage guarantee, is expected to be rolled out nationally by the Federal Department of Finance in 2020,” CFGM president and CEO David Prentice said.
“The availability of the new product will help to protect and secure the interests of our Nation’s most vulnerable and low-income Australians, particularly those who have the least access to the right products and support.”
The program will be available to eligible people across the Commonwealth, regardless of their gender, where they are from, or whether they live in a regional area.
For eligible people to receive the program, they will need to:The program is offered by the CFGMP as part of a $5 million funding injection that the Government has made in order to boost the supply of affordable housing.
“We are very excited about the new offering and we will be working closely with the Australian Competition and Consumer Commission and other relevant stakeholders to ensure this innovative product is rolled out to the broader market,” Mr Prentice told the ABC.
“For the benefit of those most at risk, we are offering a range, including:Finance Minister Michael McCormack said the CFGBP was a “win-win” for consumers and lenders, and that it was “a win for the Australian economy and for our Nation”.”
We believe the online guarantee will be of great benefit to many people, including those who may not be able to access other mortgage products or services through their local finance and lending provider,” Mr McCormack told the National Press Club in Canberra on Tuesday.”
So I think the real winners are the consumers and the lenders who are helping to ensure they have the best opportunity to access these financial products and help them buy a home.”‘
An important first step’For the first time, first-hand information on mortgage insurance will be made available on the National MSA website, as well as through the CFGP website.
The National MSS is the online home insurance platform that was launched by the Australian Federal Government in 2014.
It is used by all first-timers, and offers an option to borrow from the National Housing Reserve, the national housing loan scheme.”
In a similar vein to other online mortgage products, the National Residential Mortgage Insurance scheme will provide a range that will make people feel like they are getting access to real-time mortgage insurance coverage, so they can find out the best way to invest and save for their future,” Mr Cormack said.
While the National Rental and Home Equity Loan Scheme is the most popular financial product offered through the program as it is the one that is available to all first time home buyers, there is also a range available to renters.”
It’s really important for the Government to offer the national mortgage guarantee to all Australians and that’s where we’re going to provide a big boost,” Mr McCormack said, adding that the program would also be available through the Australian Mortgage and Housing Corporation (AMPFC) as a result of the Federal funding injection.”
I think it’s important for first time buyers to know that there are many other options available to them,” Mr McCulloch said.
Mr Prentice, who also chairs the National Farmers Federation, said the online product offered by CFGM will “help to ensure” the best mortgage guarantee for renters, first time homeowners and first time investors.”
By providing a range on the site that includes mortgage insurance products, we’re helping people to choose the products they think are best for them,” he said.
The online mortgage product will also be a valuable tool for people looking to buy a property, particularly as the mortgage insurance scheme is not available to buyers who already own a property.”
One of the things that’s been very important to us in this program has been that it’s been an important first stage in the development of this product,” Mr McNally said.