We’re proudly supporting the Australian Government’s Home Guarantee Scheme.
About the Scheme
The Home Guarantee Scheme (HGS or Scheme) is an Australian Government initiative to support eligible home buyers purchase a home sooner. The Scheme is administered by the National Housing Finance and Investment Corporation (NHFIC) on behalf of the Australian Government.
Australian Military Bank is proud to be supporting the initiative and eligible home buyers to enter the property market.
First Home Guarantee
Family Home Guarantee
Allows eligible first home buyers to purchase a new or existing home with a deposit of as little as 5%.
Allows eligible single parents with at least one dependent to purchase a family home with a deposit of as little as 2%.
Applicants must be either First Home Owners (First Home Guarantee) or eligible single parents with at least one dependent (Family Home Guarantee)
Individuals and must have earned less than $125,000 and couples less than $200,000 in the last financial year. Couples must be married or defacto (Family Home Guarantee applicants must be a single parent. A person is considered single if they don’t have a spouse and/or a de facto partner. Note: a person who is separated but not divorced is not considered single)
All applicants must be at least 18 years of age and an Australian citizen.
LMI is a requirement for borrowers when their home loan deposit is less than 20% of their property’s purchase price. This is charged at the time of settlement and can be paid up front or capitalised onto the total loan amount (conditions apply).
Not all home loans are able to take the benefit of the Scheme. The Scheme is restricted to ‘Eligible Loans’, which are home loans:
made by a Participating Lender to (1) a single eligible first home buyer, or (2) a couple who are both eligible home buyers, and
that are for the purchase of an Eligible Property that is to be occupied by you as the owner, for as long as it is backed by the Scheme
In addition to these overarching eligibility requirements, the loans must:
be secured by a registered first ranking mortgage over the eligible property
have no other registered owners at the time of settlement other than the eligible borrower/s
have 100% of the loan drawdown proceeds used for the purchase (or towards the purchase and improvement) or construction of the eligible property
have a loan amount commitment not less than 80% and not more than 95% of the relevant Value of the property
have a loan term of 30 years or less
require regular repayments of principal (with limited exceptions for interest-only loans, which mainly relate to construction lending). Exception to this will be granted during the construction of a new dwelling, whereby lenders will be able to allow borrowers to make interest only repayments for the period in which the dwelling is being constructed until it can be occupied by the borrower.
For a property to be eligible for the Scheme it must:
be a ‘residential property’ – this term has a particular meaning under the Scheme, and you should ask your lender if there is any doubt
have a purchase price under the price cap for its location – click here to view the property price caps
be purchased by an eligible first home buyer under the Scheme (if applying for the First Home Guarantee)
at the settlement date for your home loan, you will be the sole registered owner/s of the property
be a property which is (1) an established dwelling, or (2) a new-build dwelling that is purchased under a house and land package, a land and separate contract to build a home or an ‘off-the-plan’ arrangement that is financed under an Eligible Loan from a participating lender
Applications are subject the banks normal lending criteria. Fees charges and lending criteria apply and will be included with our loan offer. A Financial Services Guide (FSG) is available at all Branches, on our website and upon request.