Government’s low-deposit housing scheme expands

From July 1, a total of 32 lenders will offer the federal government’s flagship housing assistance program.

Five new lenders have just signed up for the Home Guarantee Scheme (HGS) – Credit Union SA, Illawarra Credit Union, IMB Bank, Newcastle Permanent Building Society and Unity Bank.

They join the 27 existing lenders, which includes Commonwealth Bank, NAB and an array of smaller lenders.

To be eligible for the HGS (which is also known as the First Home Loan Deposit Scheme):

• Your household income must be less than $125,000 for individuals and $200,000 for couples
• The property you buy must be less than the price cap, which varies from $250,000 in regional South Australia to $950,000 in Sydney, depending on where you buy and the type of property you purchase

Under the HGS, eligible first home buyers can purchase a property with just a 5% deposit and eligible single parents with just a 2% deposit. Participants don’t need to pay lender’s mortgage insurance, because their loan is guaranteed by the government.