Low deposit home loans for first home buyers
Owning a home is not as easy as it once was. With inflation, higher interest rates and the rise of living costs, it is becoming harder to be able to save that 20% deposit, be approved for a home loan, and own a property in Australia. With HAS, we understand this struggle and offer low deposit home loans for first home buyers. HAS brings 2.5% deposit home loans Australia wide, helping families, professionals, and single parent first home buyers skip a decade of saving and achieve their dream of property ownership – right now.
How it works – with just a 2.5% deposit home loan and you bring a sponsor to invest alongside you. HAS shared equity provides you the remaining 17.5%, to bring your deposit up to that 20%.
LMI Options
With the other 80% portion of your loan sitting with a bank, you also avoid costly Lenders Mortgage Insurance (LMI), a once off type of insurance payment protecting lenders if you need to borrow more than 80% of your home’s value. The amount will depend on the lender, size of your deposit and how much you need to borrow.
Sponsors can enjoy a return on their investment, without the risk. A sponsor, for example, could be parents helping you secure a property, without the risk of being a guarantor.
HAS shared equity is one of the best mortgages for first time buyers low deposit on the market. With HAS, low deposit first home buyers can break out and secure their financial future.
Buying a house with a small deposit through the First Home Guarantee Scheme (previously called First Home Buyers Low Deposit Scheme)
The First Home Guarantee (FHBG) is part of the Home Guarantee Scheme (HGS), an Australian Government initiative that also supports eligible home buyers to buy a home sooner. Below is a *comparison for you to see how Home Affordability Solutions (HAS) is the best mortgage for first time buyers offering a low deposit.
First Home Guarantee (FHBG) | Home Affordability Solutions (HAS) | |
Overview | Supports first home buyers | Supports all eligible home buyers |
Deposit | Minimum 5%. Lender determines genuine savings & acceptance of gov grants. | 2.5% (excluding costs). No genuine savings. Gov grants accepted state dependant. |
Repayments | 95% Principle & Interest mortgage. Interest Only exceptions for the construction period. | *80% Principle & Interest first mortgage. *17.5% Shared Equity Facility – Interest Only at 3.25% fixed rate for 5 Years. First 3 years monthly repayments funded. |
Property Purpose | Owner – Occupier only | Owner – Occupier or Investment |
Borrower Eligibility | Single & Couple home buyers | Open to all |
Means tested (e.g. income restrictions, etc.) | Yes | No such criteria |
LMI options | No LMI | No LMI + sponsors are not guarantors but investors that receive an annual return. |
Property Price Cap | Differs by state: $900,000 NSW max | $1,500,000 all states |
Title | Government is on title and is part owner | HAS customer 100% on title |
Buying a house with a small deposit through the Family Guarantee Scheme
The Family Home Guarantee (FHG) scheme is an Australian Government initiative that aims to support eligible single parents with dependants in purchasing a family home. Below is a *comparison for you to see how Home Affordability Solutions (HAS) is the best mortgage for first time buyers offering a low deposit.
Family Home Guarantee (FHG) | Home Affordability Solutions (HAS) | |
Overview | Supports single parents (min 1 dependent) | Supports all eligible home buyers |
Deposit | Minimum 2%. Lender determines genuine savings & acceptance of gov grants. | 2.5% (excluding costs). No genuine savings. Gov grants accepted state dependant. |
Repayments | 98% P&I (Principle & Interest) Mortgage (Exceptions may apply for IO (Interest Only) for the construction period) | *80% Principle & Interest first mortgage. *17.5% Shared Equity Facility – Interest Only at 3.25% fixed rate for 5 Years. First 3 years monthly repayments funded |
Property Purpose | Owner – Occupier | Owner – Occupier or Investment |
Borrower Eligibility | Single parent with at least 1 dependent child | Open to all |
Means tested (e.g. income restrictions, etc.) | Yes | No such criteria |
LMI options | No LMI | No LMI + sponsors are not guarantors but investors that receive an annual return. |
Property Price Cap | Differs by state: $900,000 NSW max | $1,500,000 all states |
Title | Government is on title and is part owner | HAS customer 100% on title |
The comparisons speak for themselves how Home Affordability Solutions (HAS) is one of the best mortgages for first time buyers low deposit.
Want to test your eligibility for our lowest deposit for first time buyers’ solution?
Are you ready to buy? Test your eligibility for our lowest deposit for first time buyers’ solution here.
*Disclaimer: Facts as of September 2023 are of general information and nature only and are subject to change.
