Did you know that the First Home Guarantee Scheme allows eligible First Home Buyers to purchase a $700,000 property with only $40,000?
Let's have a look at Tom & Sarah's situation
Tom & Sarah are First Home Buyers looking to purchase an Owner Occupied property. They have $43,000 in savings so believe they’re a long way off a purchase but want to get some ideas on the process.
In terms of their position, they are each earning an annual salary of $80,000. They both have HECS debts but no other liabilities.
They would like to understand their options and what they need to work towards. As Tom & Sarah are eligible First Home Buyers they can participate in the First Home Guarantee Scheme where only a 5% deposit + costs is required.
First Home Guarantee Eligibility
Below is the Eligibility requirements for the First Home Guarantee:
Must be an Australian Citizen or Permanent Resident
At least 18 years of age
Earning up to $125,000 for individuals or $200,000 for joint applicants, as shown on the Notice of Assessment (NOA)
Must be purchasing for Owner Occupied purposes
Price cannot exceed $700,000 (QLD Capital City - varies state to state)
As seen from the above, Tom & Sarah are eligible for this Scheme.
As Tom & Sarah are eligible, a $700,000 would require a 5% deposit of $35,000 along with the payment of upfront costs which include QLD Transfer Fee, Mortgage Registration Fee & Solicitor Costs. These costs are approx. $4,959.
Therefore, total deposit required to satisfy the purchase is $39,959.
In summary, Tom & Sarah have been able to purchase a $700,000 Property with only a $40,000 Deposit.
At LBK, we’re passionate about helping you understand your situation and secure the finance you’re looking for. Reach out today to discuss your options:
Mobile: 0401 225 713
Email: lmckean@lbklending.com.au
Comments