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Finally, a chance to tell your landlord “adios!”
Are you tired of rent hikes, fussy landlords, and endless moving boxes? You’re not alone. Millions of Aussies dream of owning their own slice of paradise, but the hefty deposit often feels like a distant, unattainable goal. Well, guess what?
Great news for first-home buyers! The Australian Government has introduced a new incentive to help you get into the property market sooner. Under the First Home Guarantee (FHBG), eligible buyers can now purchase a home with a deposit as low as 5%.
But wait, there’s more!
Not only can you buy a home with just 5% down, but you also skip that pesky Lenders Mortgage Insurance (LMI). It’s like finding a $20 note in your jeans pocket – unexpected and totally awesome!
Let’s get into the important points to check your eligibility
What is the First Home Guarantee?
The FHBG is part of the broader Home Guarantee Scheme, designed to support Australians in achieving home ownership. Here’s how it works:
- Low Deposit: Eligible buyers can purchase a home with just a 5% deposit.
- No Lenders Mortgage Insurance (LMI): This can save you thousands of dollars.
- Government Guarantee: The government guarantees a portion of your home loan, giving lenders more confidence to approve your application.
- Limited Places: There are 35,000 places available between 1 July 2024 and 30 June 2025. First Home Guarantee Scheme: Everything You Need to Know
Who is Eligible?
To qualify for the FHBG, you must meet the following criteria:
- Be an Australian citizen or permanent resident.
- Be at least 18 years old.
- Have an individual income of up to $125,000 or a combined income of up to $200,000.
- Intend to live in the property.
- Be a first-home buyer or haven’t owned property in the last ten years.
Use the Eligibility Tool to determine if you qualify: Check Here
What Can I Buy?
You can purchase a variety of property types under the FHBG, including:
- Existing houses, townhouses, or apartments
- House and land packages
- Land and a separate building contract
- Off-the-plan apartments or townhouses
How Do I Apply?
You can apply for the FHBG through a Participating Lender or their authorised representative (a mortgage broker). Housing Australia does not accept direct applications.
Important Considerations:
- Genuine Savings: Your deposit must be made up of genuine savings, as determined by your lender.
- Notice of Assessment (NOA): You will need a recent NOA to verify your income.
- Independent Advice: Consider consulting with a financial advisor and solicitor before making any decisions.
Seize This Opportunity
The 5% deposit scheme is a fantastic opportunity for first-home buyers to enter the property market. However, places are limited, so it’s essential to act quickly.
Reach out to us today for a complimentary consultation and kick off the process!
Disclaimer: This information is a general guide only and does not constitute financial advice. Please consult with a professional for personalized guidance.