The Federal Government is making it easier for Permanent Residents to purchase property here in Australia with new eligibility to access the Home Guarantee Scheme.
Officially unveiled as part of the 2023 federal budget, the expanded Home Guarantee Scheme will have broader eligibility criteria from 1st July 2023.
So, if you have PR and are looking to buy a home, be sure to read on.
What is the Home Guarantee Scheme?
Getting a deposit together can be a massive hurdle when buying a home.
And if your deposit is lower than 20%, you can get stung with Lenders’ Mortgage Insurance (LMI), which can cost you anywhere between $4,000 and $35,000, depending on the property price and your deposit amount.
Through the National Housing Finance and Investment Corporation (NHFIC), the Federal Government has three low deposit, no LMI schemes.
Which means if you’re eligible, you won’t need to wait until you’ve reached the standard 20% deposit and might be able to get on the property ladder earlier.
The First Home Guarantee support eligible buyers to purchase a home with a low 5% deposit and no LMI.
And the Family Home Guarantee assists eligible single parents to buy a home with a deposit of just 2% and no LMI.
Access to these schemes can, on average, bring forward the home-buying process by five years!
It’s worth noting there is eligibility criteria, which covers property types, locations and prices.
But an experienced agent and broker will be across all the ins and outs to help you work out if you qualify.
What you need to know
Come 1 July 2023, you may be eligible to lodge an application under the First Home Guarantee and Regional First Home Buyer Guarantee. The Family Home Guarantee is set to expand to include single legal guardians, such as an aunt, uncle or grandparent. Previously it was only for eligible single natural or adoptive parents.
All three schemes will expand to eligible borrowers who are Australian Permanent Residents, in addition to Citizens.
The First Home Guarantee is only available for new or established homes with a purchase price of less than $600,000 (metropolitan areas) or $450,000 (regional areas).
The First Home Guarantee is only available for first home buyers. This means that you cannot use the scheme if you have owned a home before in Australia.
The First Home Guarantee is only available for a limited time and is currently available until 30 June 2025.
Also, not all lenders are involved with the scheme. But a broker can help you to identify and compare participating lenders.
So give Sarah Chambers, Finance Broker with our partner Lendable a call today to see if you qualify.
Lending services provided by Finex Corporation Pty Ltd T/As Lendable. Corporate Credit Representative 526960 of Australian Credit Licence 410232 / ACN 080 877 498
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