{"id":5355,"date":"2023-11-30T09:02:39","date_gmt":"2023-11-29T23:02:39","guid":{"rendered":"https:\/\/financialplus.com.au\/?p=5355"},"modified":"2023-11-30T09:02:39","modified_gmt":"2023-11-29T23:02:39","slug":"more-lenders-sign-up-to-low-deposit-first-home-buyer-scheme","status":"publish","type":"post","link":"https:\/\/financialplus.com.au\/more-lenders-sign-up-to-low-deposit-first-home-buyer-scheme\/","title":{"rendered":"More lenders sign up to low deposit first home buyer scheme"},"content":{"rendered":"
First home buyers have just received an early Christmas gift, of sorts, with an uptick in the number of lenders that have signed up to the\u00a0Home Guarantee Scheme (HGS)<\/a>.<\/p>\n Three Westpac brands,\u00a0St.George, Bank of Melbourne and BankSA<\/a>, have added their names to the list of lenders available to first home buyers under the HGS.<\/p>\n If you\u2019re not familiar with the HGS, it gives first home buyers an opportunity to buy a place of their own with as little as a 5% deposit (and no lenders mortgage insurance) through the\u00a0First Home Guarantee<\/a>\u00a0or\u00a0Regional First Home Buyer Guarantee<\/a>.<\/p>\n First home buyers aren\u2019t the only ones to benefit. The HGS also includes the\u00a0Family Home Guarantee<\/a>, which allows solo parents to buy a home with just a 2% deposit.<\/p>\n According to Housing Australia, which runs the HGS, first home buyers can now choose from\u00a033 lenders<\/a>\u00a0participating in the scheme.<\/p>\n This includes most of the big banks (ANZ has not signed up) plus a generous variety of small banks, credit unions and non-bank lenders.<\/p>\n The extra sweetener is that more lenders can boost competition, which potentially encourages banks to keep their interest rates low for first home buyers.<\/p>\n Saving a deposit is often the key barrier for first home buyers. And when home prices and cost of living are rising, it can seem like the goal posts are constantly moving out of reach.<\/p>\n The beauty of the HGS is that it lets first home buyers jump into the property market about\u00a0four years earlier<\/a>\u00a0(on average) than they normally would.<\/p>\n So, it\u2019s no surprise that last financial year\u00a0one-in-three first home buyers<\/a>\u00a0purchased with the help of the HGS.<\/p>\nFirst home buyers with a small deposit now have an even wider range of lenders to choose from. We reveal the latest banks to join the 5% deposit scheme that\u2019s helping more buyers get into the market sooner.<\/strong><\/p>\n
More competition is good news for home loan rates<\/h3>\n
Buying with a 5% deposit helps get you into the market sooner<\/h3>\n