50,000 Low-Deposit Opportunities Available: A Pathway to Homeownership for First Home Buyers and Single Parents!

The start of the new financial year brings great news for aspiring homeowners across Australia. An additional 45,000 spots under the Home Guarantee Scheme (HGS) have been allocated for first home buyers, alongside 5,000 spots specifically earmarked for single parents. 

These spots are designed to help more Australians achieve the dream of owning their own home sooner. This is especially crucial today, where high property prices make saving a 20% deposit challenging for many young families.

The Home Guarantee Scheme, initiated by the federal government, offers a crucial leg-up into the property market by allowing eligible buyers to enter with as little as a 5% deposit. Since its launch four years ago, the scheme has facilitated over 160,000 Australians in purchasing or constructing their own homes.

This year, the HGS has expanded significantly, with an additional 50,000 spots announced for the 2024-25 financial year. This increase aims to meet the growing demand and support more individuals and families in securing affordable housing solutions.

Understanding the Home Guarantee Scheme

You may have asked yourself, “How can you buy your first home with a little extra help?” Let's explore the Home Guarantee Scheme and how it can benefit you.

What is the Home Guarantee Scheme?

The HGS acts as a guarantor for home buyers with small deposits, eliminating the need for costly lender mortgage insurance (LMI). This financial benefit can save buyers anywhere from $4,000 to $35,000, depending on the property's price and the deposit amount.

Who Does the Scheme Help?

The HGS comprises three distinct programs tailored to different types of home buyers:

First Home Guarantee

It supports first home buyers with a 5% deposit, with an additional 35,000 places now available starting July 1, 2024.

Regional First Home Buyer Guarantee

This aids first home buyers in regional areas with the same 5% deposit requirement, offering an extra 10,000 places for the current financial year.

Family Home Guarantee

Specifically, this assists single parents with a deposit as low as 2%, aiming to benefit up to 5,000 families in the coming year.

Am I eligible for the Home Guarantee Scheme?

Eligibility criteria include considerations such as maximum purchase price limits, which vary by city and regional area and are adjusted annually. To determine your eligibility and explore the requirements further, contacting us can provide personalised guidance through the process.

Participation of Banks and Mortgage Brokers

Do all banks support the Home Guarantee Scheme? The reality is that not all lenders choose to participate in the HGS. While there is a diverse selection of banks available, not all have opted into the program.

The Real Estate Institute of Australia suggests that consulting with a mortgage broker is the optimal way to determine eligibility and secure pre-approval for the scheme. Partnering with a mortgage broker provides a significant advantage in the property market, given their track record of securing up to 80% of HGS placements to date.

Own Your Dream House Sooner than Expected with Osinski Finance!

Feeling excited to secure your first home? Osinski Finance is here to guide you in the process. We streamline your journey with hassle-free application processing and expedited approval. Rely on us to navigate your path to homeownership smoothly, addressing all your questions and securing tailored home loan options from our trusted network of lenders.

For more information on purchasing your dream home, reach out to us or give us a call at (08) 9511 1177.

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