First home buyers can now purchase more expensive properties under the federal government’s hugely popular 5% deposit, no LMI scheme.
Single parents with dependent children are also welcoming the higher property price caps, which will apply to the federal government’s new Family Home Guarantee scheme, too.
The First Home Loan Deposit Scheme (FHLDS) allows eligible first home buyers with only a 5% deposit to purchase a property without forking out for lender’s mortgage insurance (LMI), which can save buyers anywhere between $4,000 and $35,000, depending on the property price and deposit amount.
The new Family Home Guarantee scheme, meanwhile, allows eligible single parents to build or purchase a home with a deposit of just 2% without paying LMI, regardless of whether or not they’re a first home buyer.
These schemes will run alongside a third home loan deposit scheme called the New Home Guarantee scheme, which allows eligible first home buyers to build or purchase a new build with a 5% deposit.
That scheme has even higher property price caps (see here), to account for the extra expenses associated with building a new home.
All three schemes have 10,000 spots available each from July 1, and spots are expected to fill up fast, so you’ll want to get in touch with us soon if you’re interested in applying.
So how much money can you spend and remain eligible for the FHLDS and Family Home Guarantee scheme?
Here’s a quick summary:
– 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.
If you’re interested in knowing how much the property price caps have increased, you can check it out here.
With all three schemes, allocations are generally granted on a “first come, first served” basis.
And it’s worth re-iterating that spots are limited and generally fill up fast.
So if you’re a first home buyer or single parent looking to crack into the property market sooner rather than later, get in touch today and we can explain the schemes to you in more detail.
And when July 1 rolls around, we can help you apply for finance through a participating lender.
Disclaimer: The content of this article is general in nature 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 personal situation and may not be relevant to circumstances. Before taking any action, consider your own 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.