Kiwis in Oz Now Eligible for Home Guarantee Scheme - Teach Me About Property

Access for Kiwi Citizens in Australia

Fantastic news for Kiwi citizens living in Australia and buying a home! As of 21st June 2024, if you’re a Kiwi on a Special Category Visa (SCV 444) and residing in New South Wales (NSW), you’re now eligible for the Home Guarantee Scheme (HGS). This is an incredible opportunity for those looking to enter the property market.

What is the Home Guarantee Scheme?

The Home Guarantee Scheme is a government initiative designed to help first-time homebuyers get into the property market with a lower deposit. Here’s what makes it so beneficial:

1. Lower Deposit Requirements: You only need a minimum deposit of 5%. This is a huge advantage, making it easier to save up and get started on your property journey.
2. No Lenders Mortgage Insurance (LMI): Since the government guarantees your loan, you don’t have to pay LMI, which can save you thousands of dollars.
3. Lower Home Loan Rates: With the government backing your loan, lenders treat it as an 80% loan-to-value ratio (LVR) loan. This means you get access to lower interest rates, usually reserved for borrowers with larger deposits.

This combination of benefits—lower deposits, no LMI, and better interest rates—also boosts your borrowing capacity. With lower rates, you can borrow more, giving you greater flexibility and choice when it comes to selecting your property.

Eligibility Criteria

Now, while this scheme is fantastic, there are some criteria you need to meet:

1. First Home Buyer Status: You must be a first-time homebuyer to qualify.
2. Price Limits: There are price limits on the property you can purchase, so you’ll need to ensure your chosen property fits within these limits.
3. Income Limits: The scheme is means-tested, meaning your income must be below a certain threshold to be eligible.

If you meet all these requirements, this scheme offers an incredible opportunity to get into the property market sooner, with significant savings. Talk to our team today about whether it can work for you.