First Home Guarantee Scheme changes to eligibility criteria from 1 July 2023 will include acceptable applicants as joint friends, joint family members, permanent residents and non-first home buyers who have not owned a property in the past 10 years.

Previously the First Home Guarantee and the Regional First Home Buyer Guarantee were only open to Australian citizens who are single applicants not in a relationship or joint applicants who are married or in a defacto relationship and have never owned a property in Australia. The new eligibility criteria will open up the schemes for many more Australian’s in an attempt from the Federal Government to reflect the changing make-up of Australian households and address the current housing affordability crisis.

The First Home Guarantee Scheme is an Australian Government initiative to assist eligible home buyers get into the home ownership market with a deposit as low as 5% and avoid paying lenders mortgage insurance.

The new round of scheme places will be available from 1 July 2023 and will be limited to 35,000 places.

How does the first home guarantee scheme work?

There are lenders who will allow customers to take out a loan with a 5% deposit however they do charge Lenders Mortgage Insurance (LMI) to the customer which can run into the tens of thousands of dollars. Usually the only way to avoid LMI is to have a minimum deposit of 20% which can be extremely difficult for first home buyers. The first home guarantee scheme guarantees an eligible home buyers loan for the outstanding 15% so no LMI is charged.

An Assured Lending Mortgage Broker can apply for the first home guarantee scheme on behalf of eligible first home buyers with one of the approved panel of lenders. Only a selected few lenders have been approved for the first home guarantee scheme so it’s important to speak with your Mortgage Broker about eligible loan options that best suit your needs.

The First Home Guarantee Scheme can also be used in conjunction with other first home buyer grants, schemes &  exemptions such as the First Home Super Saver Scheme, NSW First Home Owner Grant, NSW First Home Buyers Assistance Scheme & the First Home Buyer Choice. An Assured Lending Mortgage Broker can check your eligibility, explain all the benefits of each scheme & grant and apply for them on your behalf.

First home guarantee scheme changes to eligibility from 01/07/2023

• Individuals who earn up to $125,000 per year or couples with a combined income of up to $200,000. (based on the previous financial year income)
• Must have genuine savings of at least 5% of the property value
• Must be Australian citizens or permanent residents who are minimum 18 years of age
• Loans must be for owner occupied purposes with principal and interest repayments
• Must have not owned a property in Australia for the past 10 years
• Home loan taken must be from an approved first home loan deposit scheme lender
• Maximum property purchase prices as per table below

State/
territory
Capital city and regional centres Rest of state
NSW $900,000 $750,000
VIC $800,000 $650,000
QLD $700,000 $550,000
WA $600,000 $450,000
SA $600,000 $450,000
TAS $600,000 $450,000
ACT $750,000
NT $600,000

Download a fact sheet on The First Home Guarantee Scheme here

Contact an Assured Lending Mortgage Broker for more information today

 

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute 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.

 

The First Home Guarantee is administered by the Nation Housing Finance & Investment Corporation