If you’d like to buy your first home with just a 5% deposit and pay no lenders mortgage insurance (LMI), then you better act quick, as thousands of first home buyers are expected to rush to apply for the limited spots up for grabs.

And if you’re a single parent with dependent children, a similar scheme now allows you to purchase a home with just a 2% deposit without paying LMI, regardless of whether or not you’re a first home buyer.

In total, there are three federal government schemes that each released a fresh round of 10,000 spots on July 1.

Below we’ll unpack each of the schemes.

The First Home Loan Deposit Scheme (first home buyers)

The First Home Loan Deposit Scheme (FHLDS) allows eligible first home buyers with only a 5% deposit to purchase a property without forking out for LMI.

This is because the federal government guarantees (to a participating lender) up to 15% of the value of the property purchased.

Not paying LMI can save buyers anywhere between $4,000 and $35,000, depending on the property price and deposit amount.

As with the other two schemes below, there are just 10,000 spots available for this scheme this financial year – and in previous years they’ve been allocated within a few months. So you’ve got to get in quick!

The New Home Guarantee scheme (first home buyers)

The New Home Guarantee scheme allows eligible first home buyers to build or purchase a new build with a 5% deposit.

All in all, it’s a fairly similar scheme to the FHLDS.

One of the key differences, however, is that the property price caps are higher (see here), to account for the extra expenses associated with building a new home.

The Family Home Guarantee scheme (single parents)

The new Family Home Guarantee allows eligible single parents with dependants to build or purchase a home with a deposit of just 2% without paying LMI.

Unlike the two schemes above, you don’t have to be a first home buyer to qualify for this scheme.

Here’s a quick example of how it works.

John is a single parent with two young sons, Chris and David. John has found the perfect home for $460,000 but has struggled to save enough for the standard $92,000 deposit (20%) required while paying rent.

However, with the Family Home Guarantee, and on the success of his application with a lender, John could move into his dream home sooner, with just a $9,200 deposit (2%).

Get in touch today

With the three no-LMI schemes now open, we can’t stress enough the importance of applying for them as soon as possible to avoid disappointment.

In recent years the 10,000 spots in the FHLDS have been snatched up within a few months, and we’ve had more than a few hopeful applicants reach out to us when it’s too late.

So to help avoid disappointment, get in touch with us today and we can help you determine which scheme is most suitable for you, and then help you apply for finance with a participating lender.

First home buyers can now purchase more expensive properties under the federal government’s hugely popular 5% deposit, no LMI scheme.

Single parents with dependent children are also welcoming the higher property price caps, which will apply to the federal government’s new Family Home Guarantee scheme, too.

The First Home Loan Deposit Scheme (FHLDS) allows eligible first home buyers with only a 5% deposit to purchase a property without forking out for lender’s mortgage insurance (LMI), which can save buyers anywhere between $4,000 and $35,000, depending on the property price and deposit amount.

The new Family Home Guarantee scheme, meanwhile, allows eligible single parents to build or purchase a home with a deposit of just 2% without paying LMI, regardless of whether or not they’re a first home buyer.

These schemes will run alongside a third home loan deposit scheme called the New Home Guarantee scheme, which allows eligible first home buyers to build or purchase a new buildwith a 5% deposit.

That scheme has even higher property price caps (see here), to account for the extra expenses associated with building a new home.

All three schemes have 10,000 spots available each from July 1, and spots are expected to fill up fast, so you’ll want to get in touch with us soon if you’re interested in applying.

New property price caps

So how much money can you spend and remain eligible for the FHLDS and Family Home Guarantee scheme?

Here’s a quick summary:

– NSW: $800,000 (Sydney, Newcastle/Lake Macquarie, Illawarra) and $600,000 (rest of state).

– VIC: $700,000 (Melbourne and Geelong) and $500,000 (rest of state).

– QLD: $600,000 (Brisbane, Gold Coast, Sunshine Coast) and $450,000 (rest of state).

– WA: $500,000 (Perth) and $400,000 (rest of state).

– SA: $500,000 (Adelaide) and $350,000 (rest of state).

– TAS: $500,000 (Hobart) and $400,000 (rest of state).

– ACT: $500,000.

– NT: $500,000.

If you’re interested in knowing how much the property price caps have increased, you can check it out here.

Get in touch today to get the ball rolling

With all three schemes, allocations are generally granted on a “first come, first served” basis.

And it’s worth re-iterating that spots are limited and generally fill up fast.

So if you’re a first home buyer or single parent looking to crack into the property market sooner rather than later, get in touch today and we can explain the schemes to you in more detail.

And when July 1 rolls around, we can help you apply for finance through a participating lender.