The Federal government have introduced first home buyer schemes, some of which are available now, and others in 2023:
First Home Guarantee
This scheme helps borrowers to avoid expensive Lenders Mortgage Insurance (LMI) by having the loans guaranteed by the government. There are 35,000 places available each year and borrowers must have a minimum deposit amount of 5%.
This scheme is income tested and is for singles earning $125,000 or less and couples $200,000 or less.
Family Home Guarantees
Similar to the first home guarantee, this scheme is specifically for single parents with at least one dependent child. The income cap is $125,000, a 2% deposit is required and there are 5,000 available each year.
Help to Buy
Due to begin on 1 July 2023, the Help to Buy scheme is a shared equity model with the government contributing 40% of the cost for new builds and 30% for existing properties.
This is for low-middle income earners (singles on $90,000 and couples $120,000), has 10,000 places available each year and requires a 2% deposit.
Regional First Home Buyer Support Scheme
Another guarantor scheme with the government assisting first home buyers who already live in regional areas to avoid LMI.
The income cap for this scheme is limited to $125,000 for singles and $200,000 for couples and requires a 5% deposit. There are 10,000 places each year available for this scheme, which commences on 1 January 2023.
To find out which schemes are available to you, talk to our brokers today.
First Home Loan Deposit Scheme
Another Federal Government initiative, this allows low and middle income first home buyers to purchase a home with a 5% deposit.
There are 10,000 places each year and this scheme and it can be used for new homes, home and land packages, off the plan apartments or townhouses and existing homes.
There are property price caps in place to align with the purpose of the scheme which is to purchase a modest home and these caps vary by capital city, regional centres and regional areas. Income caps also apply (singles $125,000 and couples $200,000).
This scheme is not available from all lenders and your broker will be able to assist with testing your eligibility and navigating the application process.