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New Home Government Grants Available July 2021

New Home Government Grant

New Home Government Grants Available July 2021

New Home Government Grant

The median Sydney house value is now more than $1.1 million. The reduction and gradual abolishment of the stamp duty costs will influence a further rise in house prices but result in a positive effect on housing affordability.

Two highly anticipated government grants commenced July 1, each of them offering 10,000 new homes to eligible low-income Australians.

1. Family Home Guarantee

Who is this initiative targeting? 

10,000 places are being provided to single parents for over four years.

What is the incentive? 

Purchase a property with a deposit as little as two per cent, without having to pay for Lender’s Mortgage Insurance (LMI).

What’s the catch? 

Single parents must earn less than $125,000 to qualify. There are also price caps for properties in different regions.

2. First Home Loan Deposit

Who is this initiative targeting? 

10,000 places have been made available for first home buyers.

What is the incentive?

This allows first home buyers to purchase a property with a five per cent deposit without having to pay for LMI.

What’s the catch? 

With escalating prices in properties, there can be issues with housing affordability, and if the repayments coincide with your current earnings (for repayments). There is also a limit in property choices due to the property price cap in specific regions.

As you may be aware, there are pros and cons to purchasing a property with a small deposit. These two grants allow you to get into the market sooner rather than later without having to pay for Lender’s Mortgage Insurance, but the catch is that the mortgage repayments are higher so you will be paying more each month.

Contact us so we can help figure out what choices you have in relation to (1) your deposit and (2) the region options made available in the home government schemes.

CONTACT US FOR A FREE CONSULTATION.