The great Australian dream of owning your own home feels a little far-fetched right now. But it doesn’t have to be. Because the federal government’s Home Guarantee Scheme (HGS) means first home buyers (and even those who haven’t owned a property in 10 years), might only need a 5 per cent deposit to purchase their first house.
And if you have a mate in the same position you can even join forces and buy together on this scheme.
“Sure,” I can you hear you say. “That sounds great, but what about all the hidden fees and interest rates? Will I regret this?”
With the market trying to dig its way out of a hole right now, people are reluctant to become a first home buyer. But the stats collected by the National Housing Finance and Investment Corporation tell us that the HGS is helping people take the first step. Which is good… considering the HGS was designed to help people with a modest income get a leg up!
- The salary of HGS participants is $9000 less than other first home buyers.
- The average deposit paid by HGS participants has only risen by 3.4 per cent since 2020. The broader market wasn’t so lucky with a mind boggling 46.7 per cent increase.
- Loans have gone up all round for home buyers since 2020, but less so for HGS participants. The average loan amount increased by 4.7 per cent compared with 13.4 per cent for the broader first home buyer market
- Equity for HGS participants has gone up by $82,000.
There are a few caveats with the HGS but I can fill you in, so get in touch.