First home buyers have been granted more flexibility in their home purchasing power under the federal government’s hugely popular 5% deposit, no LMI scheme.
Single parents with dependent children are also eligible for 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 having to pay 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.
Additionally, the new Family Home Guarantee scheme, 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. Getting on top of your eligibility and application soon is key.
New property price caps
It’s important to understand exactly how much money you can spend and still 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.
Need more information?
Our independent mortgage brokers say “Each scheme discussed runs on a first come first served basis, so time is of the essence if you feel you’d like to apply. Working with us can help you quickly understand what you may be eligible for and exactly how to apply.
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.”