Designed to help first home buyers get into their own home, the 5% deposit scheme (also called the First Home Loan Deposit Scheme FHLDS) is a government grant that reduces the necessary deposit down to 5%.
While most banks and traditional lenders require a 20% deposit. The FHLDS lowers this down to 5%. When combined with Darren Walters’ unique no or low deposit new home system, it becomes one of the best ways to get out of the rental cycle and into your own home.
Here at No1 Property Guide, we’ll help you make the most of the 5% deposit scheme to get into your own home. Not only will you be saying goodbye to constantly paying off someone else’s mortgage, but you’ll be getting somewhere you can securely raise your family and relax on the weekends. Contact our New Home Consultants by filling in our pre-qualification form and they’ll help you through the homeownership journey.
Make sure you get in quick though, the government only offers the 5% deposit scheme to 10,000 people each financial year, so contact us before you miss out.
The Elimination of Lenders Mortgage Insurance
The main benefit of the 5% deposit scheme, aside from not needing a huge 20% deposit, is that you won’t need to pay Lenders Mortgage Insurance (LMI). LMI is a fee banks and lenders usually charge when you don’t have a 20% deposit. This is to protect them in the event you aren’t able to keep up your payments and they need to sell the property for a loss.
It’s important to remember that LMI protects the lender, not you.
LMI typically costs around 3-4% of the total value of the loan, so it’s easy to see how it can add up quickly. Most lenders prefer an upfront payment for this fee, which increases your deposit requirements. Some will allow you to pay it off along with your mortgage, but this will increase your debt and your interest repayments.
Luckily, the FHLDS removes the need to pay LMI and ensures you can purchase your first home with a 5% deposit, without needing to fork out tens of thousands for LMI.
Our New Home Consultants at No1 Property Guide can help you achieve your homeownership dreams today. Simply fill in our pre-qualification form and our team will get in touch to discuss your factual options.
Don’t Miss Out on the Capital Gains of Your Home
Every day you spend renting and not living in your own home, is a day you’re missing out on the capital gains of your house. Property prices continue to rise, and there are no signs that this is going to change any time soon.
The 5% deposit scheme is a great opportunity for first home buyers to take advantage of the market and start capitalising on capital growth. By combining the FHLDS with Darren’s unique no or low deposit new home system, you can break into the market and enjoy the benefits of owning your own home.
Many of our clients thought their financial situation would prevent them from owning their own home. But now they’re enjoying life as homeowners, thanks to Darren’s no or low deposit new home system. Reach out to our team using our pre-qualification form, and our New Home Consultants will be in touch to discuss all of your factual new home options.
5% Deposit Scheme & Other Grants
The Australian government offers many incentives, concessions, and grants to first home buyers. In many cases, these can be used in conjunction with the 5% deposit scheme to increase your chances of getting into your new home.
Our New Home Consultants have the experience and expertise necessary to help you take full advantage of these grants. Whether you’re a first home buyer, investor, or a previous owner trying to get back into the market, we can help.
No1 Property Guide has helped thousands of renters become homeowners, and now it’s time for you to join them. Fill in our pre-qualification form and we guide you out of the rental nightmare and into your dream home.
*The information contained in this article is of a general nature only & does not constitute financial, legal, or taxation advice. No1 Property Guide recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article