Recently we have spoken about the various government schemes and incentives available for first home buyers. But what if you don’t meet the criteria for these schemes? Is there anything else available?
Currently, the Family Home Guarantee Scheme is the only other government incentive available.
This scheme aims to support eligible single parents with at least one dependent child to buy a home, whether a first home buyer or previous home owner. Under this scheme, buyers are able to apply for finance to purchase a home with only a 2% deposit. You will also not incur Lenders Mortgage Insurance. Lenders Mortgage Insurance is insurance your lender takes out to protect themselves if you are borrowing above 80% of the purchase price. The cost of this premium is passed on to you and can often be between $5000 and $10,000. You can purchase either an existing house, a unit, vacant land or an off-the-plan property. To be eligible for this scheme you must:
- earn less than $125,000.00 per year
- not currently own a property
- intend to live in the home
- be over 18 years of age
Your lender can advise whether they can submit an application for this scheme on your behalf. There is a cap of 5000 places available under this scheme in the 2022-2023 financial year.
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