The New Home Guarantee (NHG) is a government scheme aimed to help first-time buyers achieve their dream of owning their own home. Similar to the First Home Loan Deposit Scheme (FHLDS), the NHG gives potential buyers help getting into the market by removing the need for a full 20% deposit and waiving LMI costs at the same time.
By using the NHG, eligible first home buyers can potentially save thousands of dollars over the life of their mortgage. But what is the NHG and who is eligible?
To help you out, Darren Walters and the New Home Specialists at No1 Property Guide have put together this article, highlighting everything you need to know about the NHG. Including eligibility criteria, price caps and how to apply.
If you’re ready to discover your factual new home options right now, head over and fill in our pre-qualification form. This allows our New Home Specialists to work out exactly how we can help you get into the property market.
How Does the New Home Guarantee Work?
The NHG works by the government essentially guaranteeing up to 15% of the property value to the lender. Meaning you will only need to bring a 5% deposit and won’t need to pay LMI costs. You can obviously bring more than a 5% deposit forward, and the government will simply be guaranteeing the difference between your deposit, and the 20% deposit required.
If you have a 20% deposit, you will not be guaranteed by the NHG.
Who is Eligible for the NHG?
The first, and probably most important, criteria for the NHG is being a first home buyer. If you have owned a home or had any interest in a property in Australia, you won’t be eligible. This includes separately or jointly with someone else.
Aside from this, there are the fairly standard eligibility criteria that apply to most government schemes and grants:
- You must be an Australian citizen 18 years or older, Permanent residents are not eligible.
- You must have a taxable income under $125,000 if you’re a single applicant, or $200,00 for couples. This will be based on the financial prior to the year you apply.
- Only couples who are married or in a de facto relationship are eligible. Siblings, friends, parents & children cannot buy together using the New Home Guarantee.
- You must have 5% of the value of the property saved as a deposit. Also, if you have 20% or more saved then you won’t be eligible.
- Applicants must intend to be owner occupiers. You can not use the NHG for investment opportunities.
- If you are buying an existing home, it must be a newly constructed dwelling and have been completed on or after January 1, 2020.
- If you are building, then construction must start within 12 months of entering into the building contract. And must finish within 24 months of starting.
Are There Any Price Thresholds or Caps?
Like the FHLDS, the New Home Guarantee has price restrictions that limit the value of properties first home buyers can choose.
|Capital City & Regional Centres*
|Rest of State
|New South Wales
|Australian Capital Territory
|Jervis Bay Territory & Norfolk Island
|Christmas Island & Cocos (Keeling) Islands
If the property you’re interested in is above the threshold for your state and region, you will need to consider other grants or talk to the New Home Specialists at No1 Property Guide about what other no or low deposit options we have available for you.
Are No1 Property Guide House & Land Packages Eligible Properties Under the NHG?
The best part about our house and land packages is that we can often ensure that they fall under these price thresholds! We have helped many first home buyers escape the rental nightmare and get into their own homes using Darren’s no or low deposit system. Depending on the kind of home you’re looking for, and where you want to live, we can help create a house and land package that is both incredible and eligible for the New Home Guarantee.
How Do I Apply for the New Home Guarantee?
The easiest way to apply for the New Home Guarantee is to fill in our simple pre-qualification form and speak to one of our New Home Specialists. We have helped thousands of renters escape the rental nightmare and many of them utilised grants like the NHG to take that step.
Our team understands exactly what it takes to get you approved for your own home. And we’ll guide you through the journey so you can make an informed decision to either stay renting or take the leap into homeownership.