Low deposit initiative facilitates early home purchases for over 150,000 families From mastering shortcuts on local roads to finding the fastest supermarket checkout lane, time-saving tricks are universally cherished. Today, we unveil a scheme that could expedite your journey to home ownership by several years.
Amassing a 20% deposit for your first home in places Queensland like Townsville, Brisbane, and the Gold Coast, poses a significant challenge. This task is compounded by the continual rise in national property values and the persistent pressures of living costs.
Fortunately, the federal government's Home Guarantee Scheme (HGS) has emerged as a viable solution. Over the past four years, this initiative has empowered 156,000 first home buyers, single parents, and regional Australians to realise their dream of home ownership.
Navigating with a modest 5% deposit
The HGS provides a lifeline to eligible first home buyers and single parents by demanding only a small deposit. It comprises three distinct components.
First home buyers can leverage either the First Home Guarantee or the Regional First Home Buyer Guarantee if residing outside major cities. Alternatively, the Family Home Guarantee caters to single parents seeking a home.
Under this scheme, eligible buyers can embark on their property journey with a reduced deposit, thereby circumventing the need for lenders mortgage insurance (LMI). Some may even secure a home with just a 2% deposit, while others may require a minimum of 5%.
Rather than furnishing cash or a deposit, the HGS entails the Federal Government guaranteeing the loan. This mechanism facilitates property acquisition with a small deposit while sidestepping LMI.
Propelling onto the property ladder
A significant advantage of the HGS is its ability to accelerate entry into the property market. According to the latest First Home Buyer Report by Domain, saving for a 20% deposit on an entry-level home in Queensland can span over six years, depending on the location.
Yet, the HGS offers a transformative opportunity, enabling first home buyers to access the property market approximately four years earlier, on average, than traditional routes would allow.
Eligibility nuances and lender engagement
While the HGS presents an enticing proposition, it's essential to grasp its eligibility criteria, including income thresholds and property price caps that vary by state. Notably, not all financial institutions participate in the HGS.
Hence, early consultation is paramount. We offer tailored guidance, elucidating which lenders extend low deposit/no LMI home loans under the HGS, aligning with your unique circumstances and aspirations.
Act swiftly, as quotas are finite
Each financial year, the HGS extends its benefits to a limited number of home buyers. Unsurprisingly, these opportunities fill rapidly.
If you're keen on leveraging this scheme in the upcoming financial year, enquire today. Discover whether you qualify to secure your home with just a 5% deposit and zero LMI.
To learn more, contact Premium Finance Group Australia at (07) 4720 8888 or email us at finance@pfga.com.au.
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