Dreaming of owning your first home? The Australian government’s Help to Buy scheme could be the key to unlocking your property goals. Designed to assist first-time home buyers and now passed in Parliament, this initiative will help you enter the property market with a smaller upfront investment.
What is the Help to Buy Scheme Australia?
The Help to Buy scheme is a government-backed shared equity program. It allows eligible buyers to purchase a property with a significantly smaller deposit than traditionally required. Here’s how it works:
- Reduced Deposit: You only need to save a 2% deposit for your home, compared to the usual 20%.
- Government Equity: The government contributes 30% (for existing homes) or 40% (for newly built homes) of the property’s purchase price.
- No LMI: You can avoid paying Lenders Mortgage Insurance (LMI), saving you thousands of dollars.
Am I Eligible for the Help to Buy Scheme?
To qualify for the Help to Buy scheme, you will need to meet specific criteria including:
- Be an Australian citizen aged 18 or over.
- Be a first-home buyer with no existing property ownership.
- Plan to live on the property as your primary residence.
- Have an annual income below the specified thresholds.
- Be able to cover upfront costs like stamp duty and legal fees.
How Does the Help to Buy Scheme Compare to the First Home Owners Grant?
While both the Help to Buy scheme and the First Home Owners Grant (FHOG) aim to assist first-home buyers, they differ in their approach:
- Help to Buy: Provides shared equity, reducing the upfront deposit required.
- First Home Owners Grant: Offers a one-off cash payment towards the purchase price or property-related costs.
It’s important to note that eligibility criteria and benefits vary between states and territories. For example, the First Home Buyers Grant Queensland offers specific amounts and conditions for eligible buyers.
How Can Professional Lending Solutions Help?
Navigating the complexities of homeownership, especially with new government initiatives, can be overwhelming. That’s where Professional Lending Solutions comes in. Our experienced team can:
- Assess your eligibility for the Help to Buy scheme and the First Home Owners Grant.
- Compare different loan options and interest rates to find the right loan for you.
- Guide you through the entire home buying process, from application to settlement.
You can also take advantage of our FREE online calculators for tools to help you budget and plan while saving your deposit.
Don’t let the dream of homeownership slip away. Contact Professional Lending Solutions today for expert advice and support. Let’s turn your homeownership aspirations into reality.
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.