If there’s anything that the past year has taught us, it’s that every family deserves to have a home in which they can safely shelter themselves in times of trouble. Unfortunately, it takes time to establish yourself financially and navigate through the property market—and not everyone has the luxury of waiting.
To counter the growing threat of homelessness, the Australian Government has made room for new housing schemes in the federal budget. The biggest beneficiaries from the sum of these schemes are new buyers and single parents who have yet to become property owners. Since many people falling under these categories are financially constrained and do not have very much savings and investments, these schemes can help them take strides in their journey of homeownership.
If you’re deciding on what schemes to undertake, here are three to consider:
Family Home Guarantee
Making a big deposit in order to reserve and move into a home can be a big commitment that most people aren’t financially ready to take for. However, the introduction of the Family Home Guarantee scheme makes it easier for single parents and their dependents to get into a home for just a small deposit. This scheme will run from July 2021 to 2025.
Essentially, the scheme allows the Federal Government to cover up 18% of the 20% deposit that a single parent’s mortgage loan would require. By only forking out 2% of the deposit and skipping the lenders’ mortgage insurance fee, there’s much more time and money saved to help them pay the money in increments.
First Home Loan Deposit Scheme
If you can’t qualify for the Family Home Guarantee but have similar problems with putting down a deposit for your home, there’s also a scheme just for you. The First Home Loan Deposit Scheme, or FHLDS for short, hopes to help an additional 10,000 first-time homebuyers who want to get a home for a small deposit.
If the Family Home Guarantee works under a 2% deposit from the hopeful occupant, the FHLDS only needs 5% of the deposit to get a property. There are criteria that have to be followed for who is counted as a first home buyer and who can apply, but passing the requirements would mean that you can save up to $40,000.
First Home Super Saver
The First Home Super Saver scheme allows an eligible homebuyer to place $50,000 in voluntary superannuation contributions. Those contributions will then be accessed and forwarded to a first home deposit, which can really help fast-track the ability to gain homeownership.
Essentially, the schemes allow one’s pre-tax income to go to your super and accumulate. Once that worker has found a home that they would like to deposit for, they can withdraw what has been put into the superannuation fund and use it to buy their first home. Amount-wise, going through a First Home Super Saver can reap more benefits than a regular savings account.
Conclusion
The Australian Federal Government introduced these schemes in an effort to make homeownership more attainable for certain categories of buyers. With limited spots on some of these programs, it can be tough to prepare and ensure that your finances will be intact for application. Speaking with a mortgage broker can help make the process a little smoother.
FinanceCorp in Perth, WA, can help you with your home loan deposit and all other financial needs. All of the Finance Managers at FinanceCorp are fully qualified, trained and experienced mortgage professionals who live and breathe finance. Get in touch with us today!