Good News For First Home Buyers & Single Parents: 50,000 Low-Deposit Spots Open
Are you planning to buy your first home or a single parent? This new financial year has brought some exciting news for you. We all dream of having our own home in Australia, but the soaring prices of the real estate turn your dreams to remain dream only. The high prices make it difficult to save even 20% deposits for most of the young families here in Australia. To make life easier and realize your dreams, here’s the federal government’s Home Guarantee Scheme. This amazing scheme is really helpful and will fast-track your journey towards home ownership.
This time additional 45,000 spots have been made available under the Home Guarantee Scheme (HGS). Also, there are 5,000 extra places that have been exclusively reserved for the single parents. This scheme allows the first home buyers to buy a home with a minimum of just 5% deposit. And the best part is it’s without paying Lenders Mortgage Insurance. Further, making home ownership dream more realizable than ever before.
Since the launch of this scheme four years ago, more than 160,000 Australians have bought or built their own homes. The HGS allocates spots on an annual basis and the good news is that this time for the financial year 2024-25, an additional 50,000 places have been announced under the scheme.
Let us understand about the scheme along with some most common FAQs.
What is the Home Guarantee Scheme (HGS) in Australia?
The Home Guarantee Scheme is an initiative of the Australian Government to assist first home buyers along with single parents in buying a home, even with a small deposit of 5%. Under this scheme, the government will be the guarantor of the buyer’s home loan. The eligible home buyer can buy a home with as little as 5% deposit without paying Lenders Mortgage Insurance (LMI).
This can result in huge savings on the upfront costs, which may range from $4,000 to $35,000. The amount saved depends on the price of the property & the initial deposit amount.
Who does the scheme help?
The scheme has three distinct programs, designed for different types of home buyers:
- First Home Guarantee: As per this program, the first home buyers are eligible to enter the market with as low as 5% deposits and own a home in Australia. Beginning from 1st July, 2024, additional 35,000 places have become available.
- Regional First Home Buyer Guarantee: This program supports first home buyers living in the regional areas by allowing them to purchase a home with just a 5% deposit. For the financial year 2024-25, 10,000 additional places have been opened.
- Family Home Guarantee: This program helps eligible single parents to buy a home with a deposit as low as 2%. Up to 5,000 families will benefit from this support in the current financial year.
Am I eligible for the Home Guarantee Scheme?
To be eligible for the HGS, you need to meet certain eligibility criteria, including the limits on the maximum purchase price of a home. These limits differ between cities & regions. Also, these limits are adjusted on an annual basis. For determining your eligibility, you may contact us, and we with a team of our experts will guide you through various requirements.
Do all banks support the Home Guarantee Scheme?
No, all the banks do not participate in the Home Guarantee Scheme. Although there is a wide range of lenders, not every bank has signed up. The Real Estate Institute of Australia advises consulting a mortgage broker to ascertain their qualification for the scheme and also seek prior approval. The mortgage brokers have secured up to 80% HGS placements.
We with a specialized team of experts at Loan Junction can help you by guiding you through the entire application process, answering any of your queries related to the scheme.
Why Wait?
Get in touch with us today and learn more about buying your own home with a 5% deposit and zero Lenders Mortgage Insurance.
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