Do you know that in Australia, for the first time, single parents can buy property with a deposit as low as 2%?
Sometimes, the financial pressures are too steep for single parents and other legal guardians seeking to buy their first home.
However, the Australian Government through the Home Guarantee Scheme, tackled some of these with the First Home Guarantee to make homeownership more accessible.
With the expertise of Credit Hub, this process becomes much smoother while ensuring that eligible people receive support accordingly.
Understanding The First Home Guarantee Scheme (FHG)
FHG is a revolution for sole parents buying their first house. It forms part of the wider Home Guarantee Scheme (HGS) initiated by the Australian government in support of eligible single parents or single legal guardians in buying a property earlier.
Here’s what you need to know:
- Available Places: 5,000 FHG places from July 1, 2024, to June 30, 2025
- Deposit Requirement: As low as 2% without Lenders Mortgage Insurance
- Guarantee Amount: Up to 18% of the property value
- Income Threshold: $125,000 or less per year
FHG Eligibility Criteria – What You Need to Know
To benefit from the FHG, applicants must meet the following criteria:
| Criteria | Requirements |
|---|---|
| Applicant | Must be a single parent or legal guardian of at least one dependent. |
| Income | Annual income must not exceed $125,000. |
| Residency | Must be an Australian citizen or permanent resident at the time of loan application. |
| Deposit | Between 2% and 20% of the property’s value must be saved as a deposit. |
| Owner-Occupier Requirement | You must intend to live in the purchased property and cannot own another property at settlement. |
| Age | Applicants must be 18 years or older. |
How Does Credit Hub Simplify Your FHG For You?
1. Eligibility Assessment
We start with an in-depth eligibility check about you pertaining to the FHG. Our experienced mortgage brokers will closely scrutinise every financial aspect of yours, including your source of income, savings, and dependents to find out whether you are eligible according to the requirements of the scheme.
2. Property Price Cap Guidance
The FHG has specific property price caps that vary by location. Credit Hub’s agents will help you to determine such caps so that you may focus your search on the right price levels in eligible places for your area of interest.
3. Lender Selection
As FHG applications can only be made through Participating Lenders, Credit Hub’s extensive network becomes invaluable. We’ll help you choose the right lender that not only participates in the scheme but also offers competitive interest rates and terms suited to your financial situation.
4. Documentation Assistance
The FHG has its documentation, which comprises the essential Notice of Assessment, Australian Taxation Office NOA. Credit Hub will explain which NOA is relevant in your application timeline and help you with a collection of paper works.
5. Deposit Strategy
Although the FHG scheme will accept a deposit as low as 2%, some lenders may require more. Credit Hub will consult with you to implement a suitable deposit strategy that is compatible with both the requirements of the scheme and those of the lender you have selected.
6. Property Type Advice
FHG covers a wide range of properties: existing homes, house and land packages, and even off-the-plan purchases. In this regard, we will be guided at Credit Hub by the experts to tell you what you choose is good or bad for your long-term goals and financial capacity.
7. Application Support
This is often complicated by the FHG application process. The professional team at Credit Hub will guide you through it all and ensure that all forms are filled out correctly and submitted in time.
8. Financial Planning
Purchasing a property is one of the biggest financial decisions that one may make. Credit Hub advisers give you comprehensive financial planning advice in order to ensure your property purchase is in line with your overall financial well-being.
9. Post-Settlement Services
We do not stop there at settlement. Credit Hub offers post-settlement counselling, supporting you to better deal with your mortgage and prepare to be a homeowner.
Conclusion
The First Home Guarantee is an amazing instrument for eligible single parents and legal guardians to achieve homeownership sooner. Credit Hub is dedicated to helping you make the most out of this government initiative from first to last step with advice, lender choice, and support at hand.
Want to find out more? Send us a message at Credit Hub today and let’s help you get one step closer to owning your home.
Disclaimer:
The information presented by staff or employees of Credit Hub and its associated companies is provided for general informational purposes only. We do not guarantee the accuracy, completeness, or timeliness of the data or views presented. Audience members should conduct their own research and verify any information before relying on it. Credit Hub and its associated companies are not liable for any errors or omissions, or for any actions taken based on the information presented.