You hear plenty of doom and gloom about how long it takes to save for a deposit on a home these days. Many lenders require a minimum deposit of 20%.
But did you know that there’s plenty of help available? Plenty of Australians are buying their home much sooner by accessing government schemes.
Read on to find out how you can join them!
How to do it
The latest figures from New South Wales show that first home buyers can enter the property market up to five years earlier by accessing government schemes. They include the First Home Loan Deposit Scheme, the New Home Guarantee Scheme and the Family Home Guarantee Scheme.
The First Home Loan Deposit Scheme
The First Home Loan Deposit Scheme allows you to get a home loan with as little as a 5% deposit. 10,000 places are available for the 2021/22 financial year. It’s available to eligible first home buyers of both new and existing homes.
Both singles and couples can apply for the First Home Loan Deposit Scheme.
The New Home Guarantee Scheme
The New Home Guarantee Scheme also allows you to get a home loan with as little as 5% deposit. However, unlike the First Home Loan Deposit Scheme, the New Home Guarantee Scheme is only available for first home buyers who are buying or building a brand new home.
10,000 places are also available for the 2021/22 financial year. Both singles and couples can apply.
The Family Home Guarantee Scheme
The Family Home Guarantee Scheme allows you to get a home loan with as little as 2% deposit. However, you must be a single parent with at least 1 dependent child.
You don’t have to be a first home buyer to qualify for the Family Home Guarantee, and you can buy either a new or existing home. 10,000 places are available between 1 July 2021 and 30 June 2025.
Can I use the first home owner grant (FHOG) with any of these schemes?
Yes you can if you’re building a new home. The First Home Owner Grant in New South Wales is $10,000.
Can I use the First Home Super Saver Scheme with any of these schemes?
Yes you can. The First Home Super Saver Scheme allows you to withdraw up to $50,000 of your voluntary super contributions to use as a home deposit.
How much could I borrow?
That depends on factors like your income, how much you can afford to repay and the policy of the lender.
You can use our calculator to get an idea of your potential borrowing power.
If you’re looking to buy your first home, our experienced and licensed brokers at Wisebuy Investment Group can help you to find the right loan for your needs. We’ll take the time to understand your situation and provide you with the right advice. We can also help you with your loan application.
We service a diverse range of clients in Newcastle, Lake Macquarie and Maitland. Contact us today for an obligation-free chat!