Renting, living at home, trying to save for your first home?
Buy your first home with just 5% deposit
Don't miss out.
No Lenders Mortgage Insurance (LMI).
No Stamp Duty.
The First Home Buyers Guarantee (FHBG) is a Federal Government Scheme helping a limited 35,000 first home buyers buy a property with just 5% deposit, without paying LMI.
It is allocated on a first come first serve basis, so lock it your allocation with a pre-approval now.
Beat the property price rise and get into the market earlier.
No LMI cost. No Stamp Duty.
Start with 5% deposit.
Don't miss out on your allocation.
Save $10-$20K in LMI cost
How does it save me LMI?
Lenders Mortgage Insurance (LMI)# is payable if your borrow more than > 80%.
The scheme brings your borrowing to 80% which saves you $10-$20K in LMI cost.
If you have 5% deposit, you are ready
What about Stamp duty?
Most states offer first home owners incentives such as stamp duty concession, which means you often won't have to pay stamp duty^
80% LVR means better interest rate
How does that work?
Lenders charge higher interest rates if your home loan has a LVR of > 80%. This scheme brings your LVR to 80%, so you benefit from a lower interest rate.
First Home Guarantee Scheme Eligibility
Income test
Earning up to $125,000 for individuals or $200,000 for joint applicants, as shown on the Notice of Assessment (issued by the Australian Taxation Office)
Joint applicants
Any two eligible people may apply together, including married, de-facto, friends, siblings or other family members.
Owner Occupier
You need to move into the property within six months and continue to live in that property for so long as your home loan has a guarantee under the Scheme.
Limited allocation
Limited allocation of 35,000 spots available to eligible borrowers who are Australian Citizens or Permanent Residents.
Minimum 5% deposit
Home buyers applying for the FHBG need to have between 5% and 20% of the value of an eligible property saved as a deposit.
Property types, price caps
Includes existing house, townhouse, apartments. House & land package, land & contract to build and off-the plan.
For price caps, use this tool here.
How the First Home Guarantee Scheme work (FHBG)
Let's do the numbers
Without the FHBG
$550,000 Purchase in NSW
5% deposit
-
Purchase Price = $550,000
-
Stamp Duty = Exempt
-
Less Deposit = $27,500
-
Borrowing = $522,500
-
FHBG Guarantee = NIL
-
LMI Fees = $23,085
Outcome:
-
Loan to Value Ratio = 95%
-
Final Borrowing = $545,585 (99% LVR)
-
Additional Fees = $23,085
-
Monthly repayment = $3,615 p/m
-
Lending will unlikely be approved
With the FHBG
$550,000 purchase in NSW
5% deposit
-
Purchase Price = $550,000
-
Stamp Duty = Exempt
-
Less Deposit = $27,500
-
Borrowing = $522,500
-
FHBG Guarantee = $82,500
-
LMI Fees = $0
Outcome:
-
Loan to Value Ratio = 80%
-
Final Borrowing = $522,500
-
Monthly repayment = $3,079 p/m
-
No additional Fees
-
Approval chances are high
Move into your first home
Save $216,000 over term of loan
5% deposit to get started
With the FHBG:
-
Higher chances of approval
-
No LMI cost, saving over $20K.
-
Benefit from lower interest rate
-
Get started with just 5%
-
Save $600 per month in repayments
-
$216,000 savings over 30 years!
-
Limited allocation available
-
Lock it in with a pre-approval
Why work with us?
We filter out the lenders and get you the best rate
Unlike a typical mortgage, this scheme is only limited to Government approved participating lenders.
We work with you to find out which participating lender suits you best. It's not just about the best rate. Some lenders have more allocation from the Government, which means your chances of securing the guarantee is higher.
We know how the First home guarantee scheme works
We make it simple for you
1 We make sure you qualify
2 We pick the lenders with you
3 We arrange pre-approvals
4 Secure your scheme allocation
5 Buy your first home!
It doesn't cost you anything
You don't pay for our service
We are paid by the lenders, so there is no cost to you.
Smile is an accredited mortgage broker (since 2008), operating under an Australia Credit License (ACL) and is member of the FBAA.
In fact, we help you save more
Cash back on us
You will also cashback* when your first mortgage is settled.
This is in addition to any grant, scheme benefits.
TESTIMONIALS
Get the facts
First Home Guarantee Scheme facts and guide
You will receive links to download:
First Home Guarantee (FHGB) Fact Sheet +
First Home Guarantee (FHGB) Information Guide + Property Price Cap +
First Home Guarantee Scheme FAQs
Let's get started
Get into your first home quicker.
5% deposit. No LMI.
No Stamp Duty.
Don't miss out on securing your allocation.
* Cashback available on borrowing greater than $600,000 and is advised by Smile at time of booking the home loan consultation.
* Available for new customers or existing customers and subject to minimum lending of $600,000. The commission is paid within 30 days after settlement of the borrowing. Does not apply to mortgage or lending brokered via the private lending channel.
# Subject to lender's terms and conditions.
^ Subject to each State's own first home buyers initiative