Low Deposit Schemes: Accelerating Your Path to Homeownership

The hurdles towards homeownership can often make your dream feel impossible. From increasing property values each month to the relentless grind of saving for a hefty deposit, the dream of owning your own home can seem distant. However, there's a game-changing solution that has helped over 150,000 families turn the key to their own front door years ahead of schedule.

Enter the federal government's Home Guarantee Scheme (HGS), a beacon of hope for first-time home buyers, single parents, and regional Australians wanting to get into the property market with only a small part of the usual deposit.

Breaking Down the Scheme

Home Guarantee Scheme (HGS) has the ability to purchase a home with a low deposit, without the burden of lenders mortgage insurance (LMI). This plan has three parts made for different groups of buyers:

• First Home Guarantee: Designed for aspiring homeowners making their first step into the property market.
• Regional First Home Buyer Guarantee: Geared towards those seeking homeownership outside major metropolitan areas.
• Family Home Guarantee: A lifeline for single parents striving to secure stable housing for their families.

While the specifics may vary, the scheme's goal remains consistent, which is to provide a pathway to homeownership that is both accessible and financially feasible. With this scheme, first home buyers may need as little as a 5% deposit, while solo parents can buy with just a 2% deposit. 

It's important to note that the HGS doesn’t provide a cash payment or a deposit for a home loan. Instead, the Federal Government guarantees the loan, which is the key to buying with a small deposit while avoiding LMI.

Unlocking the Door to Opportunity

The HGS works by speeding up your way to owning a home. Usually, according to Domain's latest First Home Buyer Report, saving up for a hefty 20% deposit can take around six long years. But with the HGS, buyers can jump into the market about four years sooner on average. This saves them from endless savings and shields them from rising property prices that could push their dream home out of reach.

Navigating the Terrain

Of course, like any game-changing initiative, the HGS comes with its own set of rules and regulations. Eligibility criteria, including income thresholds and property price caps, vary from state to state. Moreover, not all financial institutions have thrown their hat into the ring, making it essential to partner with experts who can guide you through the process.

Seizing the Moment

Investing in a property can be daunting. Especially, opportunities abound in a property market, but vacancies are limited, and timing is of the essence. With places in the scheme filling up rapidly each financial year, there's no time to waste. 

If you're eager to explore the possibility of homeownership with just a 5% deposit and zero LMI, Osinski Finance can help you navigate how the HGS skyrocket your homeownership journey.

So why wait? Contact us today!

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.