This scheme will allow eligible first home buyers to purchase a home with a deposit of just 5 per cent of the value of the property.
The Australian Government will guarantee the balance of the loan and cover the Lenders Mortgage Insurance. The additional costs of buying a property are still applicable and vary depending on the state e.g. Stamp Duty, registration of Mortgage, legal and banking fees and charges.
What are the eligibility criteria?
- Purchasers must be Australian citizens, at least 18 years of age and not have owned a residential property in Australia before.
- Singles can have a taxable income up to $125,000 and couples (either married or de facto) may be on a combined taxable income of up to $200,000.
- The scheme is available for most types of property purchases, but the property may not exceed the price threshold, which varies according to the state and city/town.
What else do I need to know?
- There are only 10,000 first home loan guarantees allocated each financial year. These are allocated to lenders authorised to participate in the scheme.
- The scheme can be used in conjunction with most other first home owners government schemes, grants and concessions.
- Loans must be principal and interest repayments and for an owner occupied property only.
- Purchasers must have a deposit of between 5 and 20 per cent of the property’s value. The government will provide a guarantee for the gap between your deposit and 20 per cent of the property’s value, so you don’t have to pay Lenders Mortgage Insurance.
How do I apply?
I can help you reserve a place in the scheme with one of the participating lenders and then apply to them for loan approval.
For more information about the scheme click here.