First Home Guarantee

First Home Guarantee

The Key to Your First Home: Understanding the NHFIC First Home Guarantee

Buying your first home is a significant step, and it can feel like a big challenge. That’s why the Australian Government introduced the NHFIC First Home Guarantee. Let’s break down what it means and how it might help you.

What is the NHFIC First Home Guarantee?

The NHFIC (National Housing Finance and Investment Corporation) First Home Guarantee is a government programme that aims to support first home buyers. It lets you buy your home with a smaller deposit, so it’s easier to get started.

How Does it Work?

Typically, when buying a home, you’d need a 20% deposit. That’s a large amount of money and can be hard to save up for. With the NHFIC First Home Guarantee, you only need to save a 5% deposit. The government provides a guarantee for the rest, so you don’t have to pay Lenders Mortgage Insurance (LMI).

Who Can Benefit?

If you’re a first home buyer in Australia and meet the income and other eligibility requirements, this could be a big help for you. Singles earning up to $125,000 and couples earning up to $200,000 annually may apply. There are some property price limits, but these vary by location.

How to Apply?

Applying for the NHFIC First Home Guarantee is straightforward. Start by talking to a participating lender or mortgage broker(like us!). They’ll walk you through the process, check if you’re eligible, and help you with all the paperwork.

Why Is It a Good Thing?

The NHFIC First Home Guarantee makes owning your first home more achievable. By needing only a 5% deposit, it becomes easier to reach that milestone faster. Plus, avoiding the LMI can save you a substantial amount of money.

Some Things to Consider

While this program has great benefits, it’s essential to consider your unique situation. Make sure to speak with a professional (like a mortgage broker) to understand if it’s the right fit for you. There might be other options available that suit your needs better.

Owning your first home is an exciting journey, and the NHFIC First Home Guarantee can be a valuable stepping stone. By understanding how it works and who it’s for, you might find that your dream home is closer than you think. Feel free to reach out to us if you have any questions or need guidance on your home-buying journey. We’re here to make the process as smooth and enjoyable as possible.