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Want a First Home Buyer Scheme Spot? Here’s a Shortcut

June 23, 2022

We’re just days away from 35,000 first home buyer scheme spots becoming available on July 1. If you’re keen to snare a place in the scheme – and buy your first home sooner – here’s how to get ahead of the pack.

Have you heard about the federal government’s Home Guarantee Scheme? (formerly called the First Home Loan Deposit Scheme).

It’s a government scheme that helps you purchase your first home with only a 5% deposit and you don’t have to pay lenders’ mortgage insurance (LMI).

First home buyers who use the scheme fast-track their property purchase by 4 to 4.5 years on average, because unlike normal home purchases, they’re not subject to the standard 20% deposit.

On top of that, not paying LMI can save you anywhere between $4,000 and $35,000, depending on the property price and your deposit amount.

But of course, once July 1 comes around, competition for the 35,000 spots will be fierce. So if you want to know our secret shortcut, read on.

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Get a headstart on the competition

End-of-financial-year: it’s a time that strikes fear in the hearts of many.

But if you want to steal one of those 35,000 First Home Buyer Scheme spots on July 1, you need to get your 2021/22 tax return in order now.

Why, you ask? Because lenders need your most recent financial information when assessing your home loan application, and that will most likely include your latest tax return.

So now is the time to:

1. Speak to your employer to make sure they’ll provide your PAYG summary on time.

2. Set up an appointment with your accountant in July (before they get booked up).

3. Start gathering all your work-related expenses.

How Soho Home Loans can help

first home buyer scheme

Completing your tax return is the first step in this process, and a crucial one at that.

But you have a few more things to do.

When going through your application, lenders will want you to supply them with an accurate idea of your monthly spending and discretionary expenses, which can take some time to put together.

And that’s where Soho Home Loans comes in.

Not only can we help you calculate your monthly budget – which includes your income and expenses – but we can help you crunch those numbers to give you an idea of how much you can borrow, and therefore, how much you can afford to spend on your home purchase.

This is particularly important if you want a spot in the Home Guarantee Scheme because it has borrowing caps depending on where you want to buy.

And lenders these days are becoming more strict when it comes to your debt-to-income ratio and home loan serviceability – both of which contribute to your borrowing capacity.

Lastly, did you hear that interest rates are almost definitely going to increase over the next 12 months? With that in consideration, you should include a little buffer in your budget.

Start the process today

Places in the Home Guarantee Scheme are generally given out on a first-come, first-served basis.

And don’t let this year’s expansion to 35,000 spots give you the wrong idea – the spots will get snapped up pretty quickly.

So if you’re a first home buyer wanting to get a jump start on buying a property, get in touch with Soho Home Loans today and we can explain the scheme to you in more detail, help check if you’re eligible, and take steps to get the process started.

Then on July 1, when spots become available on July 1, we’ll be ready to help you apply for your home loan through a participating lender.

Need more financial advice? 

Browse our finance category. It’s chock full of hacks and advice from industry professionals. And remember to download the Soho app for quicker browsing and property matching. It’s getting you into your dream home faster!

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