The current Australian Labor government has offered a range of measures to help first home buyers get a start, as well as trying to address supply issues with housing shortages in some areas.
In a nutshell, the Government will ‘back’ the loan for eligible people, allowing the purchaser to get their ‘foot in the door’ of the Sydney property market with a small deposit on the loan.
The deposit scheme comprises the following key elements:
5% Low deposit: Buyers only need 5% deposit, while single parents or legal guardians need a minimum 2% deposit.
No LMI: The government guarantee eliminates the need for Lenders Mortgage Insurance, which is usually required for deposits under 20%.
Unlimited places: There are no limits to the number of guarantees available. No income caps: Income limits have been removed for eligible applicants.
Property price caps: The scheme has price caps that vary by location to reflect market conditions. You can check the limit for your desired area using the Postcode Search Tool on the official website.
Originally called the “Home Guarantee Scheme”, the Government 5% Deposit Scheme allows first home buyers to access loans with a small deposit of just 5%, or 2% for single parents and legal guardians.
See more at the Government site
https://firsthomebuyers.gov.au/australian-government-5-percent-deposit-scheme
