News reports on changes to one of the First Home Buyer Schemes have been in the headlines, but just in case you have missed it: The Federal Government Home Guarantee Scheme which effectively replaces the need for a parent guarantee has been extended to include more people, and more property.
You only need a 5% deposit to purchase, with the Government acting as guarantor for up to 15% of the loan, meaning you can avoid lender’s mortgage insurance.
What’s Changing?
• Income caps removed.
Previously, single applicants needed to earn under $125,000 and joint applicants under $200,000. These restrictions are being lifted.
• Property price thresholds lifted.
The maximum property price you can buy under the scheme is being raised. This reflects increased property prices and opens many more options for purchasers.
What this might mean for you
• More choice.
You’ll have a much wider selection of suburbs to consider, not just outer or regional areas.
• Easier access.
Without income caps, and with reduced deposit requirements, more buyers will be able to get on the housing ladder.
• Important to plan carefully.
Even though thresholds rise, prices do too. It’s still crucial to borrow what you can comfortably afford and to understand all loan terms.
How Integrity Finance Australia can help
At Integrity Finance, we understand how confusing navigating home- loan schemes can be. Here’s where
we step in:
• Free eligibility check.
We’ll help you see if you qualify under the new scheme.
• Tailored home-loan options.
We compare rates and features, so you get a loan that works for you.
• Support through the process.
From deposit planning to purchase to settlement, we are here to help. If you (or someone you know) is looking to buy their first home, then call us on 03 9511 8883 or email us at loans@ ifafinance.com.au and we’ll help get you into your first home.