As property prices soar across many Australian suburbs, the challenge of meeting the 20% deposit requirement can be daunting for prospective homebuyers. For those without a substantial deposit, exploring low deposit home loans becomes a viable option. Whether you’re an investor, homeowner, or professional aspiring to purchase Australian property with a limited deposit, our expert brokers at First Royal can guide you toward a suitable solution.

Low Deposit Home Loans Unveiled

Low deposit home loans, synonymous with high Loan-to-Value Ratio (LVR) home loans, cater to individuals with a lower deposit threshold. When the 20% deposit isn’t attainable, opting for a low deposit home loan allows access to flexible home loans, albeit with the addition of Lenders’ Mortgage Insurance (LMI).

Furthermore, select banks and non-bank lenders on our panel extend home loans ranging from 85% to 95% for eligible borrowers. Contact our seasoned brokers at 03 8564 8556 to explore your eligibility for a low deposit home loan.

First Home buyer Guarantee Scheme (FHBG) under First Home Guarantee Scheme (HGS) Extended: 2023-2024

First-time homebuyers gain access to the extended previously known as First Home Loan Deposit Scheme, as announced by the National Housing Finance and Investment Corporation (NHFIC) for the 2023-2024 period. This extension opens up approximately 35,000 slots, enabling entrants to step into the property market with a minimal 5% deposit.

Am I eligible?

– You are submitting an application either individually or as part of a joint application. Joint applications are open to married or de-facto couples, friends, siblings, or other family members.

– Your intention is to occupy the purchased property as the owner.

– You are either a first home buyer or have not owned a property in Australia within the last ten years.

– You are an Australian citizen or a permanent resident aged 18 years or older.

– Your individual income in the previous tax year was below $125,000, or as a couple, your combined income was below $200,000.

– You have accumulated a 5% deposit along with the standard fees and charges, such as stamp duty.

What is the Regional First Home Buyer Guarantee (RFHBG)?

The Regional First Home Buyer Guarantee (RFHBG) is a component of the Home Guarantee Scheme (HGS), an initiative by the Australian Government aimed at expediting the home purchase process for eligible buyers.

The RFHBG specifically targets eligible regional first home buyers or non-first home buyers who have not owned a property in Australia within the past ten years. The primary objective is to assist them in acquiring a modest home in regional areas. This guarantee empowers eligible buyers to secure a home with a minimal 5% deposit, all without the requirement to pay Lenders’ Mortgage Insurance (LMI).

A regional area is defined as:

• The Statistical Area Level 4 (ASGS SA4 2016) areas in a State or the Northern Territory that are not a capital city of that State or Territory; and
• Norfolk Island; or the Territories of Jervis Bay, Christmas Island or Cocos (Keeling) Islands;

as defined in the version published by The Australian Bureau of Statistics (ABS) in July 2016.

The greater capital city areas of each state and the Northern Territory; and the entire Australian Capital Territory are excluded from the RFHBG. Home buyers in these areas may be eligible for the First Home Guarantee or the Family Home Guarantee.

The Regional Checker allows you to enter the suburb (or postcode) of your current home and the suburb (or postcode) you would like to purchase in, so you can confirm if you are eligible for the RFHBG. The Regional Checker is available on the Housing Australia website.