Family Home Guarantee & a new batch of First Home Loan Deposit Scheme places - launch today
A little beleaguered this year, our favourite Uncle Scomo wants to guarantee part of your loan again - releasing 30,000 new guarantees to help you own your first home sooner:
10,000 First Home Loan Deposit Scheme places for established (think second hand) properties
10,000 First Home Loan Deposit Scheme places for new homes (building or buying something newly built)
and 10,000 places in the brand new Family Home Guarantee Scheme.
This means, with as little as 5% deposit + "enough" money to cover your stamp duty (if there is any for you) and legal fees you can buy your first home without mortgage insurance, with economic interest rates - and no need to lean on mum and dad.
Or, if you're a single parent - 2% deposit and "enough" money to cover stamp duty (if any) and legal fees sees you sitting pretty.
In both instances, of course, there are strict criteria and you have to meet the bank policy on affordability but they are still seriously cool opportunities. Some of the criteria:
you're one of the first 10,000 to snap up a spot each year
and you meet the stringent eligibility criteria
and you're prepared to buy under the thresholds in your region / area
and you have 5% of the purchase price in regular savings exhibited over a minimum of 3 months.
Not you - don't despair there are are 100,000 of you each year in the same boat - and the current options remain, that is (subject to lender approval of course) - it's possible to start with:
no savings and a family guarantee (immediate family member)
around 6% savings and no guarantee
or more for a wider range of lenders and lower mortgage insurance
(note: no mention of 20% deposit as a minimum requirement, nice to have, not a necessity)
If you'd like to read more about the First Home Loan Deposit Scheme (FHLDS) jump over here, or we have uploaded their factsheet for you. If you'd like to learn about the Family Home Guarantee (FHG), factsheet here. If you'd like to learn about other family guarantees - here's our factsheet. And if you have any other questions we are happy to help.