Government’s low-deposit housing scheme expands
From July 1, a total of 32 lenders will offer the federal government’s flagship housing assistance program.
Five new lenders have just signed up for the Home Guarantee Scheme (HGS) – Credit Union SA, Illawarra Credit Union, IMB Bank, Newcastle Permanent Building Society and Unity Bank.
They join the 27 existing lenders, which includes Commonwealth Bank, NAB and an array of smaller lenders.
To be eligible for the HGS (which is also known as the First Home Loan Deposit Scheme):
- Your household income must be less than $125,000 for individuals and $200,000 for couples
- The property you buy must be less than the price cap, which varies from $250,000 in regional South Australia to $950,000 in Sydney, depending on where you buy and the type of property you purchase
Under the HGS, eligible first home buyers can purchase a property with just a 5% deposit and eligible single parents with just a 2% deposit. Participants don’t need to pay lender’s mortgage insurance, because their loan is guaranteed by the government.
Anthony Landahl | Managing Director Equilibria Finance
This is for general information purposes only and does not constitute advice. With all of these options there are a number of considerations outside the scope of what is covered in this article that you need to understand to ensure your personal circumstances are taken into consideration.
Equilibria Finance is a mortgage broking practice specialising in delivering residential and commercial mortgage and business and asset finance solutions to the clients of financial advice and accounting practices.