Are you a first home buyer or single parent who wants help getting a property? If so, you’ll be interested to learn that the federal government’s Home Guarantee Scheme (HGS) has now supported more than 150,000 buyers since its inception in January 2020.
Eligibility is limited. There are property price caps, which vary from state to state. Income caps also apply – $125,000 for individuals and a combined $200,000 for joint applicants.
The HGS consists of three programs:
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First Home Guarantee – eligible first home buyers can purchase a property with just a 5% deposit, without having to pay lender’s mortgage insurance (LMI). There are 35,000 places available this financial year.
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Regional First Home Buyer Guarantee – the same as above, but for regional first home buyers only, with 10,000 places this financial year.
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Family Home Guarantee – eligible single parents and single legal guardians can purchase a property with just a 2% deposit without paying LMI. There are 5,000 places this financial year.
Of the 150,000 buyers who have used the HGS, 51% have been women and 55% have been under the age of 30, according to Housing Australia, which administers the scheme.
Contact me if you’re thinking about accessing the HGS. I’ll let you know if you’re able to qualify for the scheme and manage your loan application if you are.
