Want to buy your own place sooner? These programs could help

Build your deposit and put your own financial goals in motion.

  • 8 October 2021

    Buying our own home is something most of us dream of but with cost of living pressures and the property market on the rise, getting your foot on the property ladder can sometimes feel a little out of reach.

    But the good news is, there’s help on offer! Could one of these government programs help you buy your own place sooner? 

    Home Guarantee Scheme

    The Home Guarantee Scheme (HGS) is an Australian Government initiative to support eligible home buyers purchase a home sooner. The Scheme is administered by the National Housing Finance and Investment Corporation (NHFIC). 

    There are two schemes available under the HGS:

    The First Home Guarantee Scheme (FHGS)

    The purpose of the First Home Guarantee (FHBG) is to support eligible first home buyers to enter the housing market sooner. 

    It does this by allowing NHFIC to issue up to 35,000 guarantees each financial year from 2022-23 for eligible loans to first home buyers with a deposit of between 5 and 20 per cent of the property value. Normally, when you have a deposit that’s less than 20% of a property’s purchase price, you have to pay LMI, but with this scheme, the government ‘guarantees’ your loan. The upshot? Borrowers can secure a home loan with a very low minimum deposit but without being slugged with LMI costs.

    What kind of properties can you buy?

    You can buy new or existing residential properties - like an existing dwelling, a house and land package or an apartment or townhouse off the plan.

    Is there a cap on the property’s price? 

    There is but it differs depending on the property’s location, with different price caps for capital cities and large regional centres versus other regional areas. 

    Who can apply for the scheme?

    First home buyers who are Australian citizens over 18 years old, and who plan on living in the property. Your income can be up to $125k for singles and $200k for couples for the previous financial year.

    How many places are there on offer?

    There limited places each financial year so don’t miss out! As one of a select group of lenders offering the FHBG to borrowers, we’re thrilled to be giving University professionals and students the chance to buy their first home sooner.

    Ask us about the scheme today

    More links and tools:

    The Family Home Guarantee

    This federal government initiative helps single parents (with at least one dependent child) buy a family home with as little as 2% deposit and no Lenders Mortgage Insurance. Unlike the FHBG, the Family Home Guarantee (FHG) is available to all eligible single parents regardless of whether they’re a first home buyer or a previous home owner. 

    What kind of properties can you buy?

    Like the FHBG, with the FHG you can buy an eligible new or existing residential property.

    Is there a cap on the property’s price? 

    Yes, the same price caps that apply to the FHBG, also apply to the Family Home Guarantee.

    Who can apply for the scheme?

    You need to be an Australian citizen over 18 years old and a single parent with at least one dependent, plus you must plan on being an owner-occupier. Your income also can’t be more than $125k for the previous financial year, not including child support payments. 

    How many places are there on offer?

    There are limited places each financial year. Along with the FHBG, UniBank is proud to be one of a select group of lenders helping single parents buy their own home sooner with the FHG, but places are limited so don’t miss out!

    Ask us about the FHG today

    More links and tools:

    State Government Grants

    Eligible borrowers may be able to use these guarantees with other assistance programs like state and territory first homeowner grants and stamp duty concessions. Visit your state or territory government website for more information and eligibility criteria.

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