The recent Australian Federal Budget 2021-22 announced the new Family Home Guarantee scheme, which, may allow single parents to access the housing market with as little as a 2% deposit.
What is the Family Home Guarantee?
Under the new Family Home Guarantee scheme, the Federal government will guarantee up to 18% of the home loan for eligible single parents, therefore, only requiring a 2% deposit on the property without needing to pay for expensive Lenders Mortgage Insurance.
Usually individuals would need to save up at least a 20% deposit to purchase a home or would otherwise have to pay thousands of dollars in Lenders Mortgage Insurance fees to satisfy the bank’s criteria.
The scheme is proposed to start from the 1st July 2021 and will be available over four financial years, offering 10,000 places in total, which, would limit places to 2,500 each year.
How do I get the scheme?
The Family Home Guarantee is still subject to legislative approval and further information will be available from the governments National Housing Finance and Investment Corporation website in the coming weeks.
To ensure that you don’t miss out on the scheme or would like further information, contact a member of our experienced mortgage broking team today!