In an effort to empower eligible home buyers, the Australian Government has introduced the First Home Guarantee – a groundbreaking initiative administered by Housing Australia. This scheme is tailored to support individuals with low to middle incomes, allowing them to secure a home with a minimal deposit of just five percent.

Why It Matters:

Traditionally, prospective home buyers face the challenge of accumulating a 20% deposit to secure a home loan without incurring additional costs such as Lenders Mortgage Insurance (LMI) or Low Deposit Premium (LDP). However, the First Home Guarantee reduces this barrier, requiring only a five percent deposit from buyers. Housing Australia then provides a guarantee to the lender, covering up to 15% of the property’s value.

Eligibility Criteria:

To determine your eligibility for the First Home Guarantee, visit the Housing Australia website. Generally, applicants must be Australian citizens or permanent residents aged 18 and above, without prior ownership of a residential property in the last 10 years. The scheme extends to singles with a taxable income of up to $125,000 per annum and couples with a combined taxable income of up to $200,000 per annum, as per the Australian Taxation Office’s Notice of Assessment.

Property Price Considerations:

The maximum property purchase price is contingent on the suburb and postcode of the new property. For instance, in Thomastown, the maximum purchase price guaranteed under the scheme is $800,000. Explore the available packages at Marran Run, which align with this scheme: https://marranrun.com.au/house-and-land/

How to Apply:

Ready to take the leap towards homeownership through the First Home Guarantee? Connect with the experts at Ello Lending Co, who are dedicated to guiding you through the application process and making your homeownership journey seamless. Your dream home might be closer than you think!