First Home Guarantee – 5% Deposit for First Home Buyers
What is the First Home Guarantee and how does it work?
Introducing the First Home Guarantee – an exciting opportunity for first home buyers in Australia to step into homeownership with ease. Formerly known as the First Home Deposit Scheme, this federal government initiative is designed to help a limited number of eligible individuals purchase their dream home with just a 5% deposit, without the burden of paying Lenders’ Mortgage Insurance (LMI).
The First Home Guarantee is part of the Australian government’s comprehensive suite of Home Guarantees, which includes other valuable options such as the Family Home Guarantee for single parents, the Regional First Home Buyer Guarantee, and the previously offered New Home Guarantee.
What are the benefits of the Scheme?
So, how does the First Home Guarantee work? As a government incentive, it empowers first home buyers to secure their dream property with a deposit as low as 5%, eliminating the need for Lenders’ Mortgage Insurance.
Typically, LMI is required when borrowing over 80% of the property’s value, but with this scheme, the government acts as a guarantor, underwriting your home loan, and ensuring you can avoid the added cost of LMI.
At Home Loans Hub, we’re committed to helping you take full advantage of the First Home Guarantee and other government initiatives. Our expert mortgage brokers have a wealth of knowledge and experience in navigating the intricacies of these programs, ensuring you get the most suitable home loan options tailored to your unique financial circumstances.
How to Apply for the First Home Guarantee?
Don’t let the complexities of buying your first home hold you back. With the First Home Guarantee, your path to homeownership becomes smoother and more accessible than ever before. Take advantage of this incredible opportunity and make your homeownership dreams a reality. Contact us today to learn more and kickstart your journey towards becoming a proud homeowner in Australia.
Eligibility for the First Home Guarantee
INCOME:
Singles with a taxable income less than $125,000, couples less than $200,000 for the previous financial year. Please note when applying for a place in this scheme, you will need to provide the relevant Notice of Assessment from the ATO for the previous financial year.
CITIZENSHIP:
Prior to 1 July 2023, applicants must be Australian Citizens, aged 18 years or
over. From July 1 2023, the scheme will also be available to eligible borrowers
who are Australian Permanent Residents.
JOINT APPLICANTS:
Prior to July 1 2023, couples could only allowed to apply if they are married or in a de-facto relationship. From 1 July 2023, any two eligible people may apply together, including friends, siblings or other family members.
OWNER OCCUPIED:
You need to move into the property within six months of owning your home and continue to live in that property for so long as your home loan has a guarantee under the Scheme.
PRIOR OWNERSHIP:
You must not have never owned or held interest in property in Australia before. This includes commercial property, investment or company title properties.
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