Attention, First Home Buyers! Price Caps Boost for 5% Deposit Scheme
An increase in property price caps for the highly popular Home Guarantee Scheme will soon allow first-time homebuyers with a 5% deposit to have more purchasing power.
From July 1, the property price cap in most capital cities will be boosted by $100,000. Regional areas around the country will see a rise of between $50,000 and $150,000 (detailed below).
It’s all part of the Home Guarantee Scheme (formerly the First Home Loan Deposit Scheme), which lets you to purchase a home with just a 5% deposit and no need to pay for lenders’ mortgage insurance(LMI).
On average, first-time buyers who use the program accelerate their property purchase by 4 to 4.5 years.
Not paying LMI may save buyers anywhere from $4,000 to $35,000 based on the property’s price and your deposit amount.
The government generally offers 10,000 spots for the First Home Guarantee every July 1st, however it is increasing the number of available spots by 35,000 next financial year.
Maximum purchase prices set to increase
The new property price caps below will also apply to the Family Home Guarantee for single parents, with 5,000 spots available next financial year.
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New Home Guarantee Scheme (effective July 1, 2022) |
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Capital City and Regional Centres |
Rest of the State |
|
|
NSW |
$900,000 (up from $800,000) |
$750,000 (up from $600,000) |
|
VIC |
$800,000 (up from $700,000) |
$650,000 (up from $500,00) |
|
QLD |
$700,000 (up from $600,000) |
$550,000 (up from $450,000) |
|
WA |
$600,000 (up from $500,000) |
$450,000 (up from $400,000) |
|
SA |
$600,000 (up from $500,000) |
$450,000 (up from $350,000) |
|
TAS |
$600,000 (up from $500,000) |
$450,000 (up from $400,000) |
|
ACT |
$750,000 (up from $500,000) |
|
|
NT |
$600,000 (up from $500,000) |
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The price thresholds of capital city and regional centres also apply to regions with a population of more than 250,000, such as Newcastle, Lake Macquarie, Illawarra (Wollongong), Geelong, Gold Coast, and Sunshine Coast.
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Will Bell
Will Bell has 15 years’ experience in the finance industry, the last 11 years he has owned and operated Will Bell Mortgage Broker. He specializes in residential home loans and over the years has carved out a trusted brand. This is proven by the reviews his customers have made regarding the service and the experience he has provided.
