A Reminder About the First Home Owners Guarantee
Sally Prowse
If I could save you time, money and show you how to grow your wealth using smart finance would you be interested?
As of the 1st of July 2024, the NSW government released 35,000 more places for the First Home Guarantee, making it a fantastic time for first-home buyers to get into the property market.
How Does the First Home Guarantee Work?
The First Home Guarantee allows eligible first-home buyers to purchase a property with as little as a 5% deposit without the need to pay for Lenders Mortgage Insurance (LMI). This is made possible as the government guarantees up to 15% of the loan, so you don’t need the usual 20% deposit that most lenders require.
It’s designed to make homeownership more accessible, especially in high-demand markets where saving for a large deposit can be a big barrier.
Who Qualifies?
To qualify for the First Home Guarantee, you must meet the following criteria:
? Single applicants: Must have an income of less than $125,000 per year.
? Couples: Can earn up to $200,000 combined. Couples can include those in a de facto relationship, friends, or even siblings.
? Deposit: You only need a 5% deposit for the property.
? Property Price Cap: In major metropolitan areas, the maximum property purchase price is $900,000. In regional areas, the limit is $750,000.
? Stamp Duty Exemptions: You are exempt from stamp duty on purchases up to $800,000, saving you thousands on upfront costs.
Purchase Price and Savings Breakdown
Here’s a quick look at what’s required for different property prices under the First Home Guarantee:
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First HWayne and Sarah’s First Home Success
Wayne and Sarah, in their early 20s, took advantage of the First Home Guarantee back in 2020 with $60,000 in savings. They purchased a house and land package in Sydney’s Box Hill for $711,000. Fast forward to 2024, they recently sold this property for $1,150,000 – making a profit of $445,000.
Thanks to the First Home Owners Guarantee, they were able to enter the property market and build significant equity over just four years. Now, they’re in a position to purchase a larger home, putting them on a solid path to long-term financial security.
Want to Know More?
If you’d like to learn more about how you can take advantage of the First Home Guarantee and get into the property market, please don’t hesitate to reach out to us. We’re here to help you understand your options and guide you through the process.
Why Sandcastle Finance
Contact us today: https://www.sandcastlefinance.com.au/contact-us