What is the First Home Guarantee?
The First Home Guarantee Scheme is a federal government initiative that supports eligible first home buyers to purchase a home sooner with a low deposit and without having to pay Lenders Mortgage Insurance (LMI).
How does it work and what are the benefits?
The First Home Guarantee allows an eligible buyer to purchase their first property with a deposit as low as 5%. This is considerably less than the standard 20% deposit that is usually required, saving you time and getting you into the market sooner.
The government will also underwrite your loan and act as guarantor, saving you on expensive Lenders Mortgage Insurance. This would usually need to be paid if your deposit is less than 20% and costs thousands of dollars.
Check your eligibility.
You may be eligible for the First Home Guarantee if:
- You are 18 years of age or older
- Australian citizen or permanent resident
- First home buyer who will be moving into the property
- You need to be able to demonstrate your ability to save over time, known as genuine savings, with a deposit of at least 5% and enough to cover potential stamp duty on top (if applicable)
- You need to meet the income eligibility requirements (single income up to $125,000 and couple up to $200,000 in the past financial year)
- Property price caps apply and are determined by postcode. Use the following tool to find out the price cap for your location.
What type of property can I buy?
Eligible properties include:
- An existing house, townhouse or apartment
- A house and land package
- Land and a separate contract to build a home
- Off-the-plan apartment or townhouse
How to apply.
We make the process of applying for first home grants and schemes easy.
If you’d like to apply for the First Home Guarantee then fill out the contact form below and I will be in touch to discuss.