Uncle Scomo wants to guarantee part of your loan from 1 Jan
OK, maybe thats slightly cheeky but if 2019 & 2020 are the year(s) of the First Home Buyer then they also saw a huge upswing in family guarantee applications - providing borrowers a means to get around mortgage insurance and minimise the need for endless saving.
And the government just became your new favourite uncle... well...they did if:
you're one of the first 10,000 first home buyers in a calendar 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 other family guarantees - here's our factsheet. And if you have any other questions we are happy to help.