While yes, having a 20% deposit would give you a smaller loan amount and monthly repayment, it certainly is not the pre-requisite to getting into the property market.

The government is offering all sorts of grants and schemes helping Aussies get into their homes sooner, like the First Home Guarantee that is allowing eligible First Home Buyers to enter the property market with a 5% deposit and no lenders mortgage insurance.

The First Home Guarantee (FHBG). It’s like a magic wand for eligible home buyers, turning a small 5% deposit into a home of your own. With 35,000 places up for grabs in FY2024-25, it’s game on! With this scheme you are not only entering the market with a 95% loan on the purchase price, participating lenders are offering rates as is if you were buying with a 20% deposit.

Here is an example of a recent application:

The interest rate on 95% loan with no FHBG came in at 6.99%. The monthly repayment on a $410,000 loan is approximately $2725.00 in comparison to a 95% loan with FHBG the rate came in at 6.16%. The monthly Repayment on $410,000 loan is $2501.00 per month, which is a huge monthly saving.

Family Home Guarantee (FHB)

And it doesn’t just stop there, there is a Family Home Guarantee (FHG) for the superheroes out there – the single parents and legal guardians. A home for their family could be within reach with a deposit as low as 2%. With 5,000 places available for FY2024-25, we can help make their family dream come true by empowering them with this knowledge.

Regional First Home Buyers Guarantee (RFHBG)

And for my friends in Mildura & beyond, there is a Regional First Home Buyers Guarantee (RFHBG). Just like the FHBG, a 5% deposit could have you calling a regional home your own sooner for eligible first home buyers. There are 10,000 places available for FY2024-25

Ready to make that leap from renter to homeowner? With a little help from the HGS, it might be closer than you think.  Please reach out, if you have any questions at all. I’ve linked the scheme and eligibility criteria throughout this email for more info.

*limited spots and lenders available