50,000 Low-Deposit Places Now Available for First Home Buyers and Single Parents

House Ownership. Portrait Of Happy Young Couple Holding House Keys Standing In New Their New Home, Cheerful Guy Embracing Lady Posing After Moving In Own Home.

First Home Buyers, Rejoice: More Opportunities Under the Home Guarantee Scheme!

The new financial year has ushered in fantastic news for first home buyers and single parents in Australia! With the addition of 45,000 new spots for first home buyers and 5,000 extra spots for single parents under the Home Guarantee Scheme (HGS), your dream of owning a home could become a reality sooner than you think.

Making the Australian Dream Achievable

Homeownership is a cherished aspiration for many Australians, but rising property prices can make saving for a 20% deposit challenging, especially for young families. The federal government’s Home Guarantee Scheme is designed to bridge this gap, enabling first home buyers to enter the property market with just a 5% deposit. This initiative has already helped over 160,000 Australians buy or build their own homes since its inception four years ago.

An Additional 50,000 Places Available

Each year, the number of places in the HGS is limited. However, for the 2024-25 financial year, the government has increased the availability by 50,000 spots. Here’s a closer look at how the scheme works and whether you might be eligible.

Understanding the Home Guarantee Scheme

The Home Guarantee Scheme supports first home buyers and single parents with small deposits. By acting as a guarantor for the home buyer’s loan, the government eliminates the need for lenders mortgage insurance (LMI), resulting in significant savings on upfront costs—anywhere from $4,000 to $35,000 depending on the property’s price and the deposit amount.

Who Benefits from the Scheme?

The HGS includes three distinct programs aimed at different types of home buyers:

  1. First Home Guarantee: Allows eligible first home buyers to purchase a home with a 5% deposit. From 1 July 2024, an additional 35,000 places have been made available.

  2. Regional First Home Buyer Guarantee: Supports first home buyers in regional areas to buy a home with a 5% deposit, with 10,000 extra places available for the 2024-25 financial year.

  3. Family Home Guarantee: Assists eligible single parents to buy a home with just a 2% deposit, benefiting up to 5,000 families this financial year.

Eligibility Criteria

To qualify for the HGS, applicants must meet certain criteria, including limits on the maximum purchase price, which vary by location and are adjusted annually. To find out if you meet these requirements, contacting a mortgage broker is an excellent first step.

Participating Lenders

Not all lenders participate in the HGS. While there is a broad selection of banks involved, the best way to determine eligibility and seek pre-approval is to consult with a mortgage broker. According to the Real Estate Institute of Australia, mortgage brokers have secured up to 80% of the HGS placements. They can guide you through the application process, answer your questions, and recommend suitable home loan options from participating lenders.

Get Started Today

Interested in buying a home with just a 5% deposit and no lender’s mortgage insurance? Contact us today to learn more. You could be on your way to owning your own home much sooner than you imagined! Call us at 1800-E-LOANS.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

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