Making housing more accessible by offering support is currently a priority for the Government. Why? Because providing people with help to buy their own home is fundamental to creating a stronger economy. In this article TRACY KEAREY, Director of Mortgage Advice Bureau, Brisbane explains the current Government schemes on offer and the changes that took place to existing schemes on 1 July 2021.
The good news is that as of 1 July 2021, thirty thousand more Aussies will be eligible for the government’s various first home buyer schemes, with the government also announcing expanded property price caps for homes purchased under the First Home Loan Deposit Scheme and the Family Home Guarantee.
From July 1, the federal government released a total of 30,000 openings in three different assistance programs aimed at first home buyers and single parents.
At the same time, the government also increased the price caps that apply to two of the programs, making them easier to access.
What schemes can you apply for?
There are three schemes that allow eligible buyers to purchase a property with a deposit of anywhere from 2% to 5% (depending on the scheme).
The government guarantees the ‘gap’ between that 2-5% deposit and a standard 20% deposit, so the buyer doesn’t get charged lender’s mortgage insurance (which generally applies when buyers have a deposit under 20%).
- Under the First Home Loan Deposit Scheme, 10,000 first home buyers can purchase existing homes with a 5% deposit.
2. Under the New Home Guarantee, 10,000 first home buyers can buy or build new homes with a 5% deposit.
3. Under the Family Home Guarantee, single parents (who may or may not be first home buyers) can purchase a property with a 2% deposit.
The schemes have price caps, which vary from region to region. From July 1, the caps will increase for the First Home Loan Deposit Scheme and Family Home Guarantee.
If you need expert assistance with applying for your loan or need further information on the loan options available to you please give me a call on 0417 738 469.
Tracy Kearey is an award winning Finance and Mortgage Broker with 23 years experience. She has access to over 40+ lenders and offers her clients access to extensive range of loan products and services tailored to individual borrowing needs. If you need assistance with your lending needs you can send Tracy an email or give her a call on M: 0417 738 469.