You’re a single parent with just one income. How could you possibly afford the usual 20 per cent deposit to buy a home?
Well, here’s some good news: As part of this year’s Budget, the Commonwealth Government has announced the ‘Family Home Guarantee’ – meaning single parents have the chance to achieve their home ownership dreams with a deposit of as little as 2%.
The Government has agreed to guarantee the remaining 18%.
There are 10,000 guarantees available, regardless of whether you are a first home buyer or a previous homeowner.
Before the scheme, single parents had to find either one fifth of the cost of their home, or pay lenders’ mortgage insurance (LMI), which can add thousands of dollars to the cost of a mortgage.
The scheme is flexible, allowing you to either build a new home or purchase an existing one.
How to apply for the Family Home Guarantee
- Community First is one of the scheme’s approved lenders.
- There is a limit to the number of guaranteed loans every financial year, and Community First can submit applications on your behalf until places are exhausted.
- To be eligible you must not have a spouse or a de facto partner and have at least one dependent child.
- You must be the natural or adoptive parent. This means demonstrating you are legally responsible for the day-to-day care, welfare and development of a dependent child and the dependent child is in your care.
- You’ll also need to meet the income ($125,000 per year) and property threshold requirements.
- Visit NHFIC for further information.
How Community First is supporting first time buyers
The Family Home Guarantee isn’t the only way Community First is supporting first-time home buyers.
The credit union is also working with the Commonwealth Government’s First Home Super Saver Scheme (FHSS) and the first homeowner grants and stamp duty concessions offered by the states and territories.
The FHSSS allows eligible home buyers to make extra contributions into their super fund with the intention of using these savings for a property deposit. Previously, first timers could withdraw up to $30,000 from super, however the scheme will be increased to $50,000 from 1 July 2022.
Other supports available to first home buyers include the ‘First Home Loan Deposit Scheme’ and ‘New Home Guarantee’ that may help you buy or build a property with a 5% deposit and without the need to fork out for LMI.
Alternatively, at Community First, we offer first home buyers the opportunity to borrow with a 5% deposit, although LMI applies.
If you work in one of Community First’s eligible community professions, such as the medical and emergency services sectors, you may also be able to buy a property with just a 10% deposit and no LMI.
Find out more
If you’re a first home buyer and would like to know more about the Family Home Guarantee or other financial supports available to you, talk to Community First today on 1300 13 22 77.
The information contained in this article is only correct at the point of time of publication. It is general information and has been prepared without taking into account your personal circumstances, objectives or needs. Please consider if this information is right for you before making a decision to acquire any product. Community First Credit Union Limited ABN 80 087 649 938 AFSL/Australian credit licence 231204