Are you dreaming of owning your own home but feeling overwhelmed by the high deposit requirements? The Australian Government’s Home Guarantee Scheme might be the solution you’ve been waiting for. We’ve written this online guide to explain the details of the First Home Guarantee Scheme.
From exploring how it works, who is eligible and how it can help you achieve your homeownership goals – it’s all here. Read on to learn more about the FHG Scheme and chat to our first home owner specialist mortgage broker team about the right way forward for you.
What is the Home Guarantee Scheme?
The Australian home guarantee scheme is a government initiative designed to help eligible home buyers purchase a property sooner. One of its components, the First Home Guarantee, offers a unique benefit: guaranteeing a portion of your home loan, allowing you to buy with a smaller deposit. This means you can potentially avoid costly lenders mortgage insurance.
Key Benefits of the FHBG
- Lower deposit: Purchase a home with as little as 5% deposit.
- No Lenders Mortgage Insurance: Save on upfront costs.
- Government support: Benefit from the Australian Government’s guarantee.
Eligibility Criteria
To be eligible for the this first home buyer guarantee scheme, you must:
- Be an Australian citizen or permanent resident.
- Be at least 18 years old.
- Have an income below the specified threshold ($125,000 for individuals or $200,000 for joint applicants).
- Be a first home buyer or have not owned a property in Australia in the past 10 years.
- Intend to occupy the property as your principal residence.
Deposit Requirements
While the minimum deposit required for the first home guarantee scheme is 5%, your lender may require a higher deposit based on your individual financial circumstances. It’s essential to discuss your deposit options with an experienced mortgage broker to understand your options.
Property Types and Price Caps
The Home Guarantee Scheme allows you to purchase various property types, including:
- Existing houses, townhouses or apartments
- House and land packages
- Land and a separate building contract
- Off-the-plan apartments or townhouses
Remember to check the property price caps for your desired location.
How to Apply
To apply for the Home Guarantee Scheme, you’ll need to work with a Participating Lender or an authorised representative (such as a Professional Lending Solutions mortgage broker) to have your submission processed. Housing Australia does not accept direct applications.
Important Note: The Home Guarantee Scheme does involve income testing. You’ll need to provide a Notice of Assessment (NOA) issued by the Australian Taxation Office to verify your income.
Professional Lending Solutions: Your Trusted Partner
At Professional Lending Solutions, we’re committed to helping you achieve your homeownership goals. Our experienced team can guide you through the Home Guarantee Scheme application process, assess your eligibility and find the most competitive interest rate and loan options to suit your needs. Contact us today to discuss how we can assist you in unlocking your home loan potential.
Phil’s journey from banking to mortgage brokering reflects a career driven by a commitment to personalised service and tailored financial solutions. With a distinguished background in banking, including roles at NAB, ANZ and Lloyds TSB Bank in the UK, Phil spent 12 years developing expertise in personal and commercial finance, while also completing a Bachelor of Business (Finance), followed by an MBA majoring in International Business.