[2022] First Home Guarantee Geelong

The Australian government has expanded its Home Guarantee Scheme designed to help first home buyers. Under the government’s 2022–2023 budget, $8.6 million has been allotted to expand the scheme to 50,000 first home buyers per year. Since its launching in 2020, the NHG scheme has assisted nearly 60,000 Aussies to achieve homeownership.

As per the 2022–2023 budget, up to 35,000 places per year will be available under the First Home Guarantee, one of the Home Guarantee Scheme’s components. Previously, the First Home Guarantee (formerly known as the First Home Loan Deposit scheme) has a limit on serving 10,000 first home buyers.

Act on a wider window to apply

If you are a first home buyer, the expanded slots under the First Home Guarantee offer a wider window of opportunity to get government funding assistance. You can apply for this assistance whether you’re looking to build a new house or buy an existing one. To determine which one of these fits your situation best, talk to our Aussiewide mortgage broker who can give you professional advice on the right plan of action.

The First Home Guarantee, which is administered by the National Housing Finance and
Investment Corporation (NHFIC), has several eligibility requirements. Let’s look at some of them to help you get started.
Deposit as low as 5%

Passing the NHFIC eligibility screening means you can buy your first home with a deposit of as low as 5%. This is so because the NHFIC will guarantee up to 20% of your home loan from a lender participating in the First Home Guarantee Scheme.

There are around 30 lenders participating in this scheme. All applications for this scheme have to be filed directly with one of these participating lenders. Applications may also be filed with the lenders’ authorised representative, i.e. a mortgage broker.

Four types of residential properties are eligible under the First Home Guarantee scheme. These include:
• An existing house, apartment, or townhouse
• A house-and-lot package
• Land plus a homebuilding contract
• An off-the-plan townhouse or apartment

Higher price caps on home buys

Maximum purchase prices (property price caps) are set on properties that can be purchased under the First Home Guarantee Scheme. The capital cities and regional centres have higher price caps than those in other areas.

The government has increased for the fiscal year 2022–2023 the price caps on the value of the home eligible under the scheme. Our Aussiewide agents can tell you the exact price cap in your area of interest in Geelong and other suburbs in the state of Victoria.

The basic criteria for applicants of the First Home Guarantee Scheme include the following:
• First home buyers who previously have not owned or had an interest, either separately or jointly, in a property in Australia
• Australian citizens at least 18 years of age (permanent residents are not eligible)
• Single applicants with an annual taxable income of up to $125,000 for the previous financial year
• Couples (either married or in a de-facto relationship with each other) with an annual taxable income of up to $200,000 for the previous financial year
Expert advice for quick results

The Notice of Assessment that the Australian Taxation Office (ATO) sends to you will be an important document when applying for the First Home Guarantee Scheme. Before the participating lender handling your scheme application can issue a scheme place pre-approval, it will have to see first the Notice of Assessment of your tax return for the financial year prior to your application.

Thus, signing a Contract of Sale before getting your latest Notice of Assessment from ATO entails certain risks when your scheme place pre-approval is still pending. Set a Free Lending Strategy Session with an Aussiewide mortgage expert to find out more on how to proceed in applying for the First Home Guarantee Scheme in the quickest and easiest way possible. We’ll look at your specific situation—and if appropriate—help with all the paperwork.

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