Rising property prices and the difficulty of saving for a substantial 20% deposit often make homeownership seem out of the reach of first home buyers. The Australian Home Guarantee Scheme (HGS) aims to address these issues, providing much-needed support. With recent updates, now is a perfect time for first home buyers in Central Qld to explore how the HGS can help them, especially with the assistance of a local Rockhampton mortgage broker like Finance First.
Understanding the Home Guarantee Scheme
The Home Guarantee Scheme is a government initiative to help eligible buyers purchase homes with a smaller deposit. It includes the First Home Guarantee (FHBG), Family Home Guarantee (FHG), and Regional First Home Buyer Guarantee (RFHBG). These programs allow buyers to secure a home with a deposit as low as 5% and avoid paying Lenders Mortgage Insurance (LMI).
Recent Updates to the Home Guarantee Scheme
The scheme has expanded, offering 50,000 new places for the 2024-25 financial year. Key changes include:
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Eligibility now extends to permanent residents.
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Joint applications can now include friends and family members.
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Eligibility extended to those who haven't owned property in the last ten years.
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Single legal guardians can now benefit from the Family Home Guarantee.
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Eligibility Criteria
To qualify for the HGS:
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Individual applicants must have a taxable income of no more than $125,000; joint applicants up to $200,000.
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Must be an Australian citizen or permanent resident.
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Eligible properties include existing homes, new builds, and off-the-plan purchases, with specific price caps depending on location.
Benefits for First Home Buyers
The HGS enables first home buyers to purchase homes with as little as a 5% deposit, significantly reducing the initial financial burden. Avoiding LMI can save thousands, making homeownership more affordable and accessible. The eligibility criteria have also been expanded to include joint applications for those not in a relationship, permanent residents, and individuals who haven't owned property in the last 10 years.
How to Apply for the Home Guarantee Scheme
To apply for the HGS, your broker will:
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Confirm your eligibility using the Housing Australia eligibility tool.
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Gather necessary documents, including your Notice of Assessment (NOA) from the ATO on mygov.
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Contact a participating lender to begin the application process.
Rockhampton Property Market Trends
Rockhampton's property market has seen a 9% rise in house prices as of November 2023, with a further 5% increase expected in 2024. The regional area has shown stability and growth over the past two years.
Land prices in North Rockhampton have increased from $100-$120 per square meter to between $120-$150. Top growth suburbs include Norman Gardens, Frenchville, and The Range.
Conclusion
If you’re a first-time home buyer in Central Qld looking to use the Home Guarantee Scheme, contact Finance First, your premier mortgage broker. We make the mortgage application process smooth and hassle-free. As local experts Finance First Mortgage Brokers, led by John MacMaster, understand the market and offer personalised advice to ensure you get the best deal.
We offers services from consultation to final approval, handling paperwork, negotiating with lenders, and meeting all requirements. Finance First has access to numerous lending products to get the best deal for clients and is dedicated to your property success.
Visit Finance First Mortgage Broker to schedule a consultation and start your journey towards owning your first home in Rockhampton today.