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The First Home Loan Scheme, Family Home Guarantee and New Home Guarantee

Learn more about the Federal Government initiatives available for you to purchase you first home and your first home loan scheme! New schemes available for single parent families too!
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The First Home Loan Scheme, Family Home Guarantee and New Home Guarantee

Learn more about the Federal Government initiatives available for you to purchase you first home and your first home loan scheme! New schemes available for single parent families too!
Share this article with friends and family:
Facebook
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LinkedIn
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Keep reading

If you are a first home buyer, or a single parent looking to buy a home for your family, you need to know this! Marissa will be explaining the current Federal Goverment schemes available to help you purchase your first home or a new home if you are a single parent.

Read on or click on the image above or here to watch the full video!

There are 3 Federal Government schemes available

The Federal Government has made 3 schemes available, which are:

  1. First Home Loan Deposit Scheme (FHLDS)
  2. New Home Guarantee (NHG)
  3. Family Home Guarantee (FHG)

About the First Home Loan Scheme

When you do not have a 20% deposit saved towards your first home purchase, you usually need to purchase Lenders Mortgage Insurance (LMI).  This can add to the cost of your home by several thousand dollars. Now the Federal Government is willing to guarantee the deposit you would have normally need to pay for your purchase, and you will not need to pay the Lenders Mortgage Insurance. Only a  5% deposit, extras such as stamp duty and conveyancing fees is needed to purchase your first property! This means you will save thousands to ten of thousand of dollars.

This can be used in conjunction with State/Territory home purchase grants. For example the $15,000 First Home Owner’s Grant (FHOG) from South Australia. This is available for Australian citizens and not for Permanent Residents.  There are income caps to be eligible for this, which are:

  • Single = $125K/year
  • Couple = $200K/year combined

The FHLDS can only be used for the purchase of your primary residence, and is not available for investment properties.

About the New Home Guarantee

This works the same as the First Home Loan Deposit Scheme (FHLDS), but is restricted to only new property and new builds. The property cap price under this scheme is also slightly higher, $550,000 in South Australia, compared to $500,000 for the FHLDS.

About the Family Home Guarantee

This is scheme is specifically for single parent families. This also need not necessarily be their first home purchase. You could have owned a property previously, but do not own a property now.

This scheme will allow you to purchase a home with as little as a 2% deposit, plus costs such as stamp duty and conveyancing fees. There is no need to pay for Lenders Mortgage Insurance (LMI) as the Federal Government will guarantee the balance of the deposit. This is used for the purchasing of new, established or to be built homes. It must be a residential property and also must be for owner occupancy.

The price cap for this scheme in South Australia is $500,000 and is only available for Australian citizens and not permanent residents.

The schemes are not cash in your pocket

The schemes work in allowing you purchase a property with a lower deposit, and without the additional costs of Lenders Mortgage Insurance (LMI). Essentially you are reducing the funds you would have needed to purchase a home on your own. Getting into the market sooner also means that you are getting in before property prices increase.

Speak to the team at Rise High to find out how the schemes can work for you

The team at Rise High can help you figure out your eligibility for these Federal Government initiatives. We look into details such as your taxable income, your credit standing, loan affordability and the different property cap prices depending on where you are in Australia. We will also help you identify any State/Territory grants which can help you further in purchasing your own home.

There are limited places available for this scheme so contact us to find out if you are eligible.

At Rise High:

  • we work with a large panel of lenders who can offer home loans under these schemes
  • our service is fee free, it doesn’t cost you anything to speak with us
  • we can help you secure a pre-approval (meaning your place in the scheme is secured) for 90 days while you go house hunting

Securing you your property is our first priority. We understand the basic need of having a permanent roof over your head, especially as a single parent. Let us help you realise your dream of owning your home! Securing you your property is our first priority.

Fill in the form below and our multiple award winning team will be in touch! You can also keep getting house-shopping ready by reading more on our blog, and checking out our house price negotiation tips.

Remember that this scheme is specifically for single parent families. This also need not be their first home purchase.

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