New Homes Guarantee Scheme
ScoMo is your guarantor
Still saving for your first home?
No need, we’ve got the solution
Have you been busy manifesting your dream home but can’t quite get those savings in orders (we get it, daily coffees are totally essential.)? Luckily the Gov’ has come to your rescue with the New Homes Guarantee Scheme.
You know how your parents can go guarantor for your home if you don’t have a 20% deposit and don’t want to pay pesky LMI? Well with the New Homes Guarantee Scheme ScoMo will go guarantor for you. You just need to put in 5% of the purchase price, and he’ll cover the other 15%.
Cheat sheet: New Homes Guarantee Scheme
Ok, time to get the lowdown on all things New Homes Guarantee Scheme. When you purchase a property, you generally need 20% deposit or you’ll need to pay the bank a couple of grand in LMI, on a $450k loan with 5% deposit you’d be looking at over $13k in LMI. Yikes. But if you get a spot on the New Homes Guarantee Scheme the bank will waive the LMI costs as the Government is your guarantor. Basically, you’ll save a helluva lotta moolah.
But are you eligible?
You don’t need to be the smartest smartie on the block to know that the New Homes Guarantee Scheme will get you into your own home sooner. You also don’t need to be super smart to work out if you’re eligible, so save your smarts for when it counts. Like choosing your home builder.
The eligibility break down:
- Have a deposit between 5% and 20% of the property’s value
- Be a real life person (no trusts or businesses)
- Aged over 18 years old
- An Australian citizen
- Earnt less then $125k as a single or $200k as a couple last financial year
- Have never owned a residential property in Australia
- Build a new home under $550k
If all of these smarts align for you, congrats! If in doubt, get in touch and we can help you out. (Eligibility criteria correct as of 22/06/2021).
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Can I take advantage of the New Homes Guarantee Scheme?
If you’ve scrolled this far it’s likely! Provide your deets below and our in-house smarties will work out if you qualify.
Here’s a few As to some Qs you may have.
What is the New Homes Guarantee Scheme?
The New Homes Guarantee Scheme is an Australian gov’ initiative that helps first home buyers get into their own home with just 5% deposit (and avoid paying LMI). To make up the 20%, you will no longer need to ask your parents to go guarantor, because ScoMo is going to do that for you! Cha-ching!
How does the New Homes Guarantee work?
If you’re a lucky duck that lands yourself a spot on the New Home Guarantee Scheme, the bank will waive the LMI costs as the Government is your guarantor. All you need to do is supply a 5% deposit and the gov’ will cover the remaining 15%. There are only a few banks that are a part of this sweet deal and spots are limited. Wanna know more? Our finance smarties are always (and we mean ALWAYS) here to help!
What types of properties qualify for the New Homes Guarantee Scheme?
As long as your property is under $550K (correct as at 22/06), it should qualify for the New Homes Guarantee Scheme. Tick all the other boxes and you’ll be living it big in no time.
How do I apply for the New Homes Guarantee Scheme?
Simples – chat to our finance smarties! They’ll be able to run the numbers to see if you qualify and they’ll take care of the paperwork for you.