What are 2% Deposit Home Loans?
If you are looking to take out a home loan in New South Wales with only a 2% deposit home loans, it is important to note that this may be difficult to find. Most lenders require a minimum deposit of 5% or more, and some may even require up to 20% of the property’s value. However, there are a few options you can explore to increase your chances of getting a home loan with a lower deposit:
- First Home Loan Deposit Scheme (FHLDS): The Australian Government’s FHLDS can help eligible first home buyers purchase a home with a deposit as low as 5%. The scheme enables the government to provide a loan guarantee for up to 15% of the property’s value, allowing buyers to avoid paying Lender’s Mortgage Insurance (LMI).
- Lender’s Mortgage Insurance (LMI): LMI is a one-time insurance premium that protects the lender if you default on your home loan. While it can add to the cost of your loan, it may also help you secure a loan with a lower deposit, as lenders may be more willing to lend to borrowers with LMI.
- Guarantor Home Loans: If you have a family member or friend who is willing to act as a guarantor on your home loan, you may be able to secure a loan with a lower deposit. This involves the guarantor using their own property as security for your loan.
It is important to do your research and speak to a leading mortgage broker in Sydney or financial adviser to find the best home loan options for your individual circumstances. Call us 0403 803 470 for more information we offer our services in Sydney, Blacktown, Penrith, Parramatta, Hornsby, Liverpool, Mascot and near by areas of NSW. Our services are also extended all over Australia.
Supporting single parents to buy a family home with a deposit as small as 2% deposit home loans
Under the Family Home Guarantee, a single parent can get a home loan with a and avoid lenders mortgage insurance The Family Home Guarantee (FHG) is part of the Home Guarantee Scheme (HGS), an Australian Government initiative to support eligible single parents with at least one dependent purchase a home sooner. It is administered by the National Housing Finance and Investment Corporation (NHFIC) on behalf of the Australian Government. The FHG aims to support eligible single parents with at least one dependent child to buy a home, whether that single parent is a first home buyer or a previous home owner. From 1 July 2022 – 30 June 2023, 5,000 FHG places are available to eligible single parents with at least one dependent. Under the FHG, part of an eligible home buyer’s home loan from a Participating Lender is guaranteed by NHFIC. This enables an eligible home buyer to purchase a home with as little as 2% deposit without paying Lenders Mortgage Insurance. Any Guarantee of a home loan is for up to a maximum amount of 18% of the value of the property (as assessed by the Participating Lender). This Guarantee is not a cash payment or a deposit for a home loan.
Are you eligible for the First Home Guarantee, Family Home Guarantee or Regional First Home Buyer Guarantee 2023
For the Home Guarantee Scheme, you can check your eligibility on the NHFIC website. The following conditions will generally apply:
- Australian citizens who are at least 18 years of age. Permanent residents are not eligible
- Applicants must not have previously owned or had an interest in a residential property, either separately or jointly with someone else (this includes residential strata and company title properties, regardless of whether it was an investment or owner-occupied property and whether it was ever lived in). Family Home Guarantee applicants are allowed to have previously owned a home, however they must not currently have a freehold interest in property (this includes land)
- Only singles with a taxable income of up to $125,000 per annum and couples with a combined taxable income of up to $200,000 per annum may be eligible (taxable income as shown on the Notice of Assessment issued by the Australian Taxation Office)
- For the First Home Guarantee and Regional First Home Buyer Guarantee, couples are only eligible if they are married or in a de facto relationship. Other persons buying together, including siblings, parent/child or friends, are not eligible
- For the Family Home Guarantee, the applicant must be a single parent with at least one dependent child.
- The Guarantee will only apply to Owner Occupied home loans paid on a principal and interest basis (investment properties and Interest Only loans are excluded). If the loan relates both to the purchase of vacant land and to the construction of a house, the loan may still be eligible even if the terms of the construction loan agreement permit Interest Only payments for the partially funded period
- For the First Home Guarantee and Regional First Home Buyer Guarantee, applicants must have a deposit of between five percent and 20% of the property’s value. For the Family Home Guarantee, applicants must have a deposit of between two percent and 20%
- For the Regional First Home Buyer Guarantee, at least one applicant must have lived in the region (ASGS SA4 2016) or an adjacent region for the entire previous 12 months
- Refer to the NHFIC Regional Checker to see if your postcode is eligible under the Regional First Home Buyer Guarantee
Your maximum property purchase price is subject to the suburb and postcode of your new property. You can check the property price threshold for your property’s suburb and postcode using NHFIC’s property price threshold tool. You can only use the Guarantee once for the settlement of a home. If you were unable to purchase a property in the required timeframe, you may be able to make a new place reservation.