The Federal Government announced on the 1^st of July that it was adding 40,000 new places to the Home Guarantee Scheme which is welcome news for many first home buyers still trying to enter the property market.

Formally known as the First Home Loan Deposit Scheme, the incentive was rolled out by the previous government to assist buyers in getting into their first home faster by shortening the time needed to save for a deposit.

Giving potential first home buyers the opportunity to purchase a home with only a 5% deposit, the scheme also allows the applicant to be exempt from paying Lenders’ Mortgage Insurance as the government essentially acts a guarantor for the remaining 15% deposit.

First Home Loan Buyer Scheme Eligibility

To qualify for the FHBG, the applicants must be:

• applying as an individual or couple
• an Australian citizen at the time they apply for the loan
• over the age of 18 years.
• earning up to $125,000 for individuals and $200,000 for couples.
• purchasing for owner occupation
• first home buyers who have not previously owned a property in Australia

In Western Australia there is a price cap of $600,000 for the Perth metro area and surrounds, and $450,000 for regional locations.

An applicant can apply for a place through a Participating Lender who will assess their eligibility on their behalf. The place will be reserved for 14 days during which time the applicant is required to organise a preapproval. If a property is not located and the reservation expires, the applicant will be required to reapply for another place. There is a 90-day window for an applicant to enter a contract to buy a property before the reservation is no longer valid.

If you or someone you know is a First Home Buyer looking to purchase, then this may be a fantastic way to help that dream become a reality sooner.

Contact your Blackburne Mortgage Broker for more information and for assistance in securing your place in the scheme before the places run out!