First Home Guarantee
As your local Sunshine Coast Mortgage Brokers, we can help you navigate the First Home Guarantee process. If you’re searching for a Mortgage Broker near you, our team is here to assist.
Are you a first-time buyer looking to enter the Sunshine Coast property market but struggling to save a large deposit? The First Home Guarantee scheme allows you to buy a home with just a 5% deposit, helping you get on the property ladder without paying Lenders Mortgage Insurance (LMI).
What Is the First Home Guarantee?
The First Home Guarantee is a government-backed scheme designed to make homeownership more affordable for first-time buyers. The scheme allows you to purchase a home with as little as a 5% deposit, while the government acts as a guarantor, helping you avoid costly LMI.
Key Benefits of the First Home Guarantee in Sunshine Coast
Here’s why the First Home Guarantee is a great option for first-time buyers in Sunshine Coast:
- 5% Deposit: You only need a 5% deposit to buy your first home, making it easier to save and enter the property market.
- No LMI: Avoid paying Lenders Mortgage Insurance, which is typically required when your deposit is less than 20%.
- Increased Property Thresholds: In Queensland, the property price cap for the First Home Guarantee is $700,000, giving you more options in the Sunshine Coast region.
- Access to Competitive Interest Rates: Lenders participating in this scheme offer competitive interest rates, ensuring you get the best interest rates.
Who Is Eligible for the First Home Guarantee?
To qualify for the First Home Guarantee in Sunshine Coast, you need to meet certain eligibility criteria:
- First-Time Buyer: You must be buying your first home in Australia.
- Income Limit: Single applicants must have an income under $125,000, while couples must have a combined income under $200,000.
- Australian Citizen & Permanent Resident: The scheme is only available to Australian citizens and permanent residents.
How the First Home Guarantee Works
Here’s how the First Home Guarantee helps you secure a home:
- 5% Deposit: You only need a minimum 5% deposit, which helps you get into the market sooner.
- Government as Guarantor: The government guarantees part of your loan, reducing the risk for lenders and helping you avoid LMI.
- Loan Application: You’ll apply through participating lenders who offer loans under the First Home Guarantee scheme.
- Buy Your Home: Once approved, you can buy your home with a smaller deposit and no additional insurance costs.
How to Apply for the First Home Guarantee in Sunshine Coast
Getting started with the First Home Guarantee is simple. Here’s how you can apply:
- Check Your Eligibility: Ensure you meet the requirements for income, citizenship, and first-time homebuyer status.
- Choose a Lender: I can help you compare participating lenders in Sunshine Coast to find the best rates and loan terms.
- Submit Your Application: Once you’ve found the right loan, I’ll guide you through the application process, making sure you have all the necessary documents.
- Buy Your First Home: With your loan approved, you can begin the process of purchasing your first home, with only a 5% deposit and no LMI.
Our happy customers
We’ve helped First Home Buyers get their first home
Our expert mortgage brokers in Sunshine Coast have helped first-time buyers like Chloe, Ian & Grace, and David secure their dream homes using the First Home Guarantee. Whether it’s navigating the 5% deposit rule, avoiding costly LMI, or combining government grants, we’ve guided them every step of the way. By tailoring the right loan options and providing expert advice, we’ve helped buyers save thousands and achieve homeownership sooner than expected.
Chloe
Chloe, a nurse in Sunshine Coast, was tired of renting but struggled to save a 20% deposit. With just $35,000 saved, she found the First Home Guarantee and bought her first home with a 5% deposit, avoiding LMI costs. Now, she’s a happy homeowner in Caloundra, and the best part? She saved $29,169 on LMI!
Ian & Grace
Ian & Grace, a couple from Nambour, were eyeing a $650,000 new build but only had $45,000 saved. Thanks to the First Home Guarantee (hello, 5% deposit!) and a handy $30,000 First Home Owners Grant, they skipped paying LMI and landed their dream home, saving $32,425 in the process.
David
David, a 30-year-old sparky from Maroochydore, was ready to buy his first home but only had a small deposit saved. Using the First Home Guarantee, he purchased a $580,000 property with just a 5% deposit, avoiding LMI and saving $11,950 in stamp duty. With help from his mortgage broker, David moved into his new home without the stress of needing a 20% deposit.
Common Questions about First Home Guarantee Scheme
The First Home Guarantee is a game-changer for first-time buyers in Sunshine Coast. With a small 5% deposit, no LMI, and access to competitive loan options, you can step into the property market sooner. Here are some common questions our First home buyers have asked.
The Sunshine Coast property market has been increasingly competitive in recent years, with strong demand driving property prices upward. However, the First Home Guarantee can help you secure a home with a smaller deposit, giving you a better chance to enter the market sooner. The key is to act quickly and work with a knowledgeable mortgage broker to find opportunities before they’re gone.
In my experience as a trust mortgage broker some areas of the Sunshine Coast, like Caloundra, Nambour, and Bli Bli, offer more affordable property prices compared to coastal hubs like Noosa or Maroochydore. These more affordable suburbs also have high growth potential as demand continues to spread inland. Working with a local expert can help you identify areas with strong growth prospects while staying within your budget.
You’ll need to apply for the First Home Guarantee through a participating lender. As a mortgage broker, I can help you find the right lender, prepare your application, and guide you through the approval process. The lender will assess your eligibility and handle the government application on your behalf.
Yes, aside from the First Home Guarantee, you may be eligible for the First Home Owners Grant (FHOG) in Queensland. This grant provides up to $30,000 for the purchase of a newly built home valued under $750,000. Additionally, there are stamp duty concessions available for first-time buyers, which can save you thousands in upfront costs.
There are no specific restrictions on the location within Sunshine Coast for properties under the scheme, as long as the property falls within the price cap. However, the property must be used as your primary place of residence, meaning you need to live in it for at least 12 months after purchase.
In Queensland, the maximum property price for eligible homes under the First Home Guarantee is $700,000. This applies to properties in the Sunshine Coast region and includes both new and established homes.
Yes, you can use a gift from family or friends as part of your deposit, but the lender may require a signed statement confirming that it is a gift, not a loan. Each lender has specific requirements regarding gifted funds, so it’s important to check with your mortgage broker to ensure compliance.
The First Home Guarantee can be used for both new and existing homes. Whether you’re buying a newly built property, an established home, or even building your own, you can apply the scheme to your purchase as long as you meet other eligibility criteria.
The scheme allows you to buy a home with a minimum deposit of 5% of the property’s value. This is significantly lower than the standard 20% deposit typically required to avoid LMI, making it easier for first-time buyers to enter the market.
Buy Your First Home in Sunshine Coast with the First Home Guarantee
The First Home Guarantee offers a unique opportunity for first-time buyers to enter the Sunshine Coast property market with a small deposit and no LMI costs. Whether you’re buying a new or existing home, this scheme can make homeownership more achievable. I’m here to help you every step of the way, from finding the right loan to securing your first property.
Contact me today to learn more about the First Home Guarantee and how to apply for a 5% deposit home loan in Sunshine Coast.