In recent times, buying a property in Australia has started to feel more and more out of reach for people who don’t already own a first property. The Australian Government 5% Deposit Scheme offers a welcome relief to those who were previously faced with the challenge of saving a 10%-20% deposit, plus the potential added costs of Lenders Mortgage Insurance. The 5 Percent Deposit Scheme supports eligible home buyers to purchase a home sooner with a lower deposit.
Who can get the 5% Deposit scheme?
Designed to help Australians into the property market who are starting out or starting over, the Australian Government 5% Deposit Scheme is available to the following groups:
• Australian First Home buyers (who have saved a 5% deposit)
• Australians who haven’t purchased a property in the last 10 years (who have saved a 5% deposit)
• Australian single parents or guardians with at least one dependant (with a deposit as little as 2%)
To find out more about whether you qualify, call Sami Orchard on 0499 462 312
For further information, you can also visit: https://firsthomebuyers.gov.au/australian-government-5-percent-deposit-scheme
Key updates to the previous scheme
Formerly known as the Home Guarantee Scheme, the updated 5% Deposit Scheme has been designed to make it easier for buyers to get into the property market. Some of the key updates include:
- Unlimited places
- No income caps (now available to high income buyers)
- Increased property price caps (see below)
- No Lenders Mortgage Insurance
- No waitlists
What are the new property price caps for your area?
Below are general price caps by region. For clarification of the price cap in your post code, simply ask our helpful team of Mortgage Brokers on the Sunshine Coast.
- QLD – capital city and regional centre – $1,000,000
- QLD – other – $700,000
- NSW – capital city and regional centre – $1,500,000
- NSW – other – $800,000
- VIC – capital city and regional centre – $950,000
- VIC – $650,000
- WA – capital city – $850,000
- WA – other – $600,000
- SA – capital city – $900,000
- SA – other – $500,000
- TAS – capital city – $700,000
- TAS – other – $550,000
- ACT – $1,000,000
- NT – $600,000
What type of property can be purchased?
Whether you’re looking to buy a house, apartment, building or vacant land, the 5 Percent Deposit Scheme is available to eligible buyers.
Government guaranteed to participating lenders
The Australian Government provides a guarantee to your chosen lender (Participating Lender authorised to offer the Scheme) so they can lend the home buyer up to 95% or 98% of the home’s value.
What home loan options are available?
Not all home loan lenders are authorised participating lenders for the the 5% Deposit Scheme, but there are a wide range of available providers and loan options to evaluate. It pays to carefully assess and select the right home loan option, to suit your unique circumstances. Sami and Nicky Orchard at QE Loans on the Sunshine Coast can assess your circumstances, then provide you with a list of home loan options which best suit your needs. You’ll receive a clear explanation of the pros and cons of each home loan and lender, so you can make a well informed decision on the ideal fit for your needs.
Start planning now and own your own home sooner
Start a conversation with Sami and Nicky Orchard, your reliable ortgage brokers the Sunshine Coast today and get clarity on the options available to you. There’s no obligation and no out of pocket expense. We’re here to help you make your property goals a reality.