Thanks to an increase in property price restrictions for the popular Home Guarantee Scheme, first-time buyers with a 5% deposit will soon have additional purchasing power.
From July 1 2022, most capital cities will see a $100,000 increase in their property price maximum, while regional areas around the country will see increases ranging from $50,000 to $150,000. (exact details below).
It’s all part of the House Guarantee Scheme (formerly known as the First Home Loan Deposit Scheme), which lets you buy your first home with just a 5% down payment and no lender’s mortgage insurance (LMI).
First-time buyers who take advantage of the programme save an average of 4 to 4.5 years on their house purchase, because that way, you won’t have to pay the usual 20% deposit.
Better yet, not paying LMI can save buyers anywhere between $4,000 and $35,000, depending on the property price and your deposit amount.
The government usually issues just 10,000 spots for the First Home Guarantee every July 1, but next financial year it’s opening up 35,000 spots.
Related articles:
- 2022 Guide: Government First Home Buyer Grants and schemes
- First Home Guarantee Expanded! Win For First Home Buyers, Regional Buyers & Single Parents
- Beyond the Deposit: Preparing For the Costs of Owning Your First Home
Property price cap increases
The new property price caps below don’t just apply to the Home Guarantee Scheme.
They’ll also apply to the Family Home Guarantee for single parents, in which 5,000 spots will be allocated next financial year.
NSW capital city and regional centres: $900,000 (up from $800,000)
Rest of state: $750,000 (up from $600,000)
VIC capital city and regional centres: $800,000 (up from $700,000)
Rest of state: $650,000 (up from $500,00)
QLD capital city and regional centres: $700,000 (up from $600,000)
Rest of state: $550,000 (up from $450,000)
WA capital city and regional centres: $600,000 (up from $500,000)
Rest of state: $450,000 (up from $400,000)
SA capital city and regional centres: $600,000 (up from $500,000)
Rest of state: $450,000 ( up from $350,000)
TAS capital city and regional centres: $600,000 (up from $500,000)
Rest of state: $450,000 (up from $400,000)
ACT capital city and regional centres: $750,000 (up from $500,000)
NT capital city and regional centres: $600,000 (up from $500,000)
Newcastle, Lake Macquarie, Illawarra (Wollongong), Geelong, Gold Coast, and Sunshine Coast are among the cities with populations of over 250,000 people that are subject to the capital city and regional centre pricing thresholds.
Get the ball rolling today
Places in these programmes, like the first-time home buyer’s scheme, are usually given out on a first-come, first-served basis.
Don’t be fooled by the 35,000 new spots; they’ll fill up fast.
So if you’re a first home buyer or single parent looking to crack into the property market sooner rather than later, get in touch with Soho Home Loans today and we can explain the schemes to you in more detail and help check if you’re eligible.
And when the spots do free up over the next few months, we’ll be ready to help submit your application through a participating lender.
Looking for your dream home?
We can also help you out in that department. Browse our search page to check out some amazing listings available right now. But don’t just stop there, download our app to get the full Soho experience. Just remember to shortlist or swipe left on our listings so we can send you others that better match what you’re looking for.
