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Want to buy a home with a 2% deposit?

Posted By Tahlia Shiach  
26/05/2021
15:00 PM

Are you a single parent that would love to get into the property market but thought you’d never be able to afford it? Well worry no more. In the 2021-2022 federal budget the federal government have generated room to allow for this new scheme that will assist single parents trying to get ahead. With the property market booming currently, you might think its not a very good time to enter however, you might change your mind when you find out you can purchase a house with as little as a two percent deposit!

The scheme will give single parents with dependents, the opportunity to get into the market whether they are a First Home Buyer or not.

There is a criteria to being eligible and obtaining this scheme which we have listed below however, we always recommend jumping onto the Australian Government website and reading up on the National Housing, Finance & Investment Corporation page to ensure you are getting the correct current terms and conditions. The home being purchased, cannot be used as an investment as the scheme has been created to keep families feeling stable during such an inconsistent time. You should also have a conversation with your Broker or Banker to see which participating lenders are assisting this scheme and which bank will best suit your needs. All states and territories in Australia will have different thresholds as to how much you can purchase before the scheme will no longer cover you. New South Wales has a threshold for up to $700,000.00 in Capital cities and Regional centers and $450,000.00 in the rest of the state. You must not also earn more than a taxable income of $125,000.00 each financial year to be eligible to apply for this scheme.

The government have allowed for up to 10,000 families to benefit from this scheme as this is how many loans they will be able to accept being exempt from the LMI with the two-percent deposit. If you haven’t started thinking about buying, well now is as good a time as ever. The scheme will start from July 1st so we suggest getting in contact with your Broker or Banker to see were you stand.