Support Options to Reduce Your Deposit and Avoid LMI
What is the Home Guarantee Scheme?
The Home Guarantee Scheme (HGS) is an initiative of the Australian Government, overseen by Housing Australia, with the goal of aiding qualified home buyers in securing a home sooner.
The scheme features three key programs:
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First Home Guarantee: This program permits first-time buyers to obtain a home with a deposit as low as 5%, without the need to pay Lenders Mortgage Insurance (LMI).
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Regional First Home Buyer Guarantee: This program allows individuals in regional areas to purchase a home with a 5% deposit and eliminates the requirement for LMI.
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Family Home Guarantee: This initiative assists eligible single parents or legal guardians who have at least one dependent, allowing them to buy a home with a deposit starting at 2% without LMI.
What is the First Home-Owner Grant?
The First Home-Owner Grant (FHOG) is a single payment intended to support first-time home buyers. This is a national program, financed by the Australian Government and managed by the respective states and territories. The amount of the grant and the eligibility requirements differ based on the location of the purchase, and it is accessible solely to individuals who fulfil all the specific criteria set by the states.
What Is Stamp Duty and Why Is It Relevant?
Stamp duty, which is also called transfer duty, is a government tax that is payable when acquiring a property. The expense can escalate to tens of thousands of dollars, alongside your deposit and other fees. Fortunately, if you are a first home buyer, you might qualify for significant savings or even a complete exemption, depending on your residence and the property's value.