Existing house, townhouse or apartment
House and land package
Land with a separate build contract
Off-the-plan apartment or townhouse
Building a new home or buying a new house is an enormous task that can put a strain on your finances especially if you do not have ready money to enter the market. To help people seeking to build a new home, the Australian government is offering financial schemes such as the First Home Guarantee Scheme, formerly known as the First Home Loan Deposit Scheme or the First Home Buyer Deposit Scheme.
The First Home Loan Deposit Scheme (along with the New Homes Guarantee) is a new initiative by the Australian Government to help first home buyers purchase or build a new home. By providing a guarantee, it allows eligible first home buyers on low and middle incomes to purchase a home with a deposit of as little as 5%.
Compared to the First Home Owners Grant, the difference is that you do not receive a cash benefit from the Government. Rather, with the First Home Guarantee Scheme (formerly First Home Loan Deposit Scheme), you are guaranteed being able to purchase a home through a 5% deposit. So you can eliminate the hassle of trying to save a large sum for a deposit!
First home buyers on low to middle incomes are able to obtain a home loan with a deposit as low as 5%, with the remaining 15% value of the property guaranteed by the National Housing Finance and Investment Corporation (NHFIC). The Scheme can be applied to a variety of different residences.
In the 2022 Federal Budget for the 2022-2023 financial year, the First Home Guarantee Scheme has been expanded to 35,000 guarantees per year, along with 5,000 places for the Family Home Guarantee and 10,000 places per year for the new Regional Home Guarantee.
For the 2021-2022 financial year, there are 10,000 Scheme places available. That sounds like a lot, right? Not quite. In January 2020 alone, 3,000 places were filled!
The guarantee (or loans under the scheme) stays in place until the loan is refinanced, you sell your home, move out or until your loan principal balance reduces to below 80% of the value of your property at purchase.
• Must be an Australian Citizen and at least 18 years of age. Unfortunately permanent residents do not qualify for this first home loan deposit scheme.
• A first home buyer who has not previously owned or had interest in a property in Australia either separately or jointly.
• Singles with a taxable income of up to $125,000 per annum for the previous financial year or couples with a taxable income of up to $200,000 per annum for the previous financial year.
• Intend to be the owner occupier of the property for at least 6 months.
• Couples are only eligible if they are married or in a de-facto relationship with each other.
• The Scheme is to assist singles and couples (together) who have at least 5% deposit saved. If you have 20% or more saved, then you will not be covered.
• Scheduled repayments of the principal and interest of the loan are required for the full period of the agreement.
Find out more about the range of grants and schemes to help first home buyers get into their new home. Talk to a Move Homes specialist on (08) 9249 4455 to see how we can help you build or move into a new home as soon as possible.
The First Home Loan Deposit Scheme/First Home Guarantee Scheme is an Australian Government initiative that helps eligible first home buyers on low-middle incomes purchase a home with as little as a 5% deposit.
The First Home Loan Deposit Scheme allows buyers on low-to middle incomes to purchase a home with a deposit as little as 5%, with the remaining amount (up to 15%), guaranteed by the National Housing Finance and Investment Corporation.
Eligible participants must be Australian citizens over the age of 18. They must be a first home buyer and intend to occupy the property for at least six months. Singles with a taxable income of up to $125,000 per annum or up to $200,000 for couples may be eligible. Read more here!
Currently, there are 27 participating lenders in Australia offering eligible participants the First Home Loan Deposit Scheme.
If you believe you’re eligible for the First Home Guarantee Scheme or the First Home Loan Deposit Scheme, chat with our Finance team to discuss how we can help.
Salary thresholds differ depending on whether you’re applying as a single or a couple. Salary thresholds for singles are up to $125,000 or less in the last financial year. A couples combined income must be less than $200,000 in the last financial year.
Often one of the most complicated components of being a first-time buyer is managing your finances. At Move Homes, we have a team of Property Specialists and Financial Advisors who can help you sort out your finances such as narrowing down a list of suburbs within your range and determining a good payment scheme. Our team will also help match you with a home loan that suits your budget completely free of charge! Further, we can assist with determining if you are eligible for the First Home Owners Grant, First Home Loan Deposit Scheme/ First Home Guarantee Scheme, Keystart (or other additional government assistance) and the Home of My Own Foundation.
Want to find out if you’re eligible for the First Home Loan Deposit Scheme? Send us a message and we’ll be in touch!
Over the last 50 years we have proudly built over 20,000 homes for Australian families. We have the same values today as we did in 1969 when we built our first home in Light Street Dianella.
