The property price cap for the first home loan deposit scheme has been raised.

Under the federal government's immensely successful 5% deposit, no LMI scheme, first-time buyers can now acquire more expensive residences.

The higher house price limitations, which will apply to the federal government’s new Family Home Guarantee scheme as well, are also being welcomed by single parents with dependent children.

The First Home Loan Deposit Scheme (FHLDS) allows first-time home purchasers with a 5% deposit to purchase a home without having to pay lender’s mortgage insurance (LMI), saving them anywhere from $4,000 to $35,000 depending on the property price and deposit size.

In the meanwhile, the new Family Home Guarantee plan allows eligible single parents to build or buy a home with a 2% deposit and avoid paying LMI, regardless of whether they are first-time buyers or not.

These schemes will coexist with a third home loan deposit scheme known as the New Home Guarantee scheme, which allows eligible first-time home purchasers to build or buy a new home with a 5% deposit.

To account for the additional costs connected with building a new home, that program has even higher property price restrictions (see here).

From July 1, all three schemes will have 10,000 spaces available, and spots are likely to fill up quickly, so if you’re interested in applying, please contact us as soon as possible.

New property price caps

So, how much money can you spend while still being qualified for the FHLDS and Family Home Guarantee?

Here’s a basic rundown of what happened:

– NSW: $800,000 (Sydney, Newcastle/Lake Macquarie, Illawarra) and $600,000 (rest of state).

– VIC: $700,000 (Melbourne and Geelong) and $500,000 (rest of state).

– QLD: $600,000 (Brisbane, Gold Coast, Sunshine Coast) and $450,000 (rest of state).

– WA: $500,000 (Perth) and $400,000 (rest of state).

– SA: $500,000 (Adelaide) and $350,000 (rest of state).

– TAS: $500,000 (Hobart) and $400,000 (rest of state).

– ACT: $500,000.

– NT: $500,000.

You can find out how much the property price caps have climbed by clicking here.

Get in touch with us right away to get things started.

Allocations are normally allocated on a “first come, first served” basis under all three methods.

It’s also worth noting that spaces are restricted and tend to fill up quickly.

So, if you’re a first-time buyer or a single parent trying to get into the property market sooner rather than later, get in touch with us immediately and we’ll give you more information about the schemes.

When July 1st arrives, we can assist you in obtaining financing from a participating lender.

To learn more, contact Premium Finance Group Australia at (07) 4720 8888 or email us at finance@pfga.com.au

Disclaimer: The content of this article is general 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 situation and may not be relevant to circumstances. Before taking any action, consider your 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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