The new financial year has started with exciting news for first home buyers! An impressive 45,000 additional places have become available under the Home Guarantee Scheme (HGS), along with 5,000 more spots specifically for single parents. Here's how this could expedite your journey to home ownership in Townsville, Brisbane, and other parts of Queensland.
Owning a home has always been a cherished aspiration for many Australians, but high property prices have made it challenging for young families to save a 20% deposit.
This is where the federal government’s Home Guarantee Scheme (HGS) steps in.
The scheme supports first home buyers by allowing them to enter the property market with just a 5% deposit, and it has gained immense popularity.
Since its inception four years ago, the HGS has assisted more than 160,000 Australians in purchasing or building their own homes.
Although the scheme has an annual cap on places, the great news is that an additional 50,000 spots have been announced for the 2024-25 financial year.
Not sure what the scheme entails? Let's delve into the details with some frequently asked questions.
The Home Guarantee Scheme (HGS) aids first home buyers and single parents in purchasing a home even with a small deposit. Essentially, the government acts as a guarantor for the buyer’s loan, eliminating the need for lenders mortgage insurance (LMI), which can significantly reduce upfront costs.
Avoiding LMI can save buyers between $4,000 and $35,000, depending on the property price and deposit amount.
The HGS comprises three distinct programs, each targeting a different group of home buyers.
To qualify for the HGS, certain criteria must be met, including limits on the maximum purchase price for a home, which vary by city and regional areas and are adjusted annually.
One effective way to determine your eligibility is to contact us, and we can guide you through the various requirements.
No, not all lenders participate in the HGS. While there is a reasonable selection of banks involved, not all have signed up.
The Real Estate Institute of Australia recommends speaking with a mortgage broker to determine your eligibility and secure pre-approval. Mortgage brokers have successfully secured up to 80% of the HGS placements and can assist with the application process, answer questions about buying your first home, and recommend suitable home loan options from participating lenders.
Call us today to learn more about purchasing a home with a 5% deposit and zero lenders mortgage insurance. You could be in your own home in Townsville, Brisbane, or the Gold Coast much sooner than you expected!
To learn more, contact Premium Finance Group Australia at (07) 4720 8888 or email us at finance@pfga.com.au.
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