If you’re one of many Aussies who want to purchase their first home with just a 5% deposit, this might be your opportunity. Recently, the federal government reopened 4,651 slots for First Home Guarantee Scheme.
With a First Home Guarantee Scheme, buyers don’t need to wait and save up to 20% of their deposit. That’s because you can now break the property market with as low as a 5% deposit.
As a result, grantees make their first property purchase as soon as 4 years on average. Usually, the federal government would open new slots once every year, but they decided to issue new spots twice this year.
Why Are There Extra Spots on the Guarantee?
According to the Prime Minister of Australia, the 4,651 freshly opened slots are from empty and unclaimed spots from the 2020-2021 financial year.
These include unclaimed spots due to COVID restrictions and stay-at-home regulations. However, the government hasn’t released an official date when these slots will be available to the public.
The NHFIC also stated that its lenders and other government offices are working together to oversee the reissuing of the scheme to make sure the unused guarantees will be available as soon as possible.
If you want to be at the forefront when the slots are officially open, reach out to us today, and we’ll let you stay up-to-date when the spots drop.
What is a First Home Guarantee Scheme?
Home Guarantee Schemes are subdivided into three distinct schemes. Two schemes suitable for first home buyers are the First Home Loan Deposit Scheme and New Home Guarantee, while one is for single parents named Family Home Guarantee.
The first two guarantees let first home buyers acquire their property with as low as a 5% deposit and can be exempted from lenders’ mortgage insurance payments (LMI). That way, buyers can save from $4,000 to as much as $35,000, depending on the house price and deposit amount.
Keep in mind that the NHFIC also sets price caps for properties depending on your location. In Sydney, Newcastle, and Illawarra, the guarantee is capped at $950,000, while applicants in South Australia can get up to a $350,000 guarantee.
Reach Out to Us Today
As the new slots for home guarantees drop, they will be granted on a first-come-first-served basis. That’s why you need to stay at the forefront since the spots will likely fill up fast.
If you’re a first home buyer interested in applying for a home guarantee scheme to crack into the property market, reach out to us at Plan A Mortgage, and we’ll take you through them in depth.
As soon as the spots are open, we can also help you look for the right lender for your home loan needs and negotiate the rates and terms that work for you.
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