With rising property prices in many parts of Australia, it can sometimes feel impossible to get a foot on the property ladder. BCU Bank is proud to be part of the Home Guarantee Scheme, an Australian government initiative to help home buyers realise their home ownership dream.
We’re one of just 33 authorised lenders in the country and, along with our award-winning home loans and great interest rates, it’s just another way we help home buyers get into their own home sooner.
So, what is the First Home Guarantee? There are currently three guarantees in the scheme, each supporting a different group of Australians.
The First Home Buyer Guarantee
Let's start with the First Home Buyer Guarantee (FHBG). This little gem is all about helping you save for a deposit. Under the scheme, part of an eligible home buyer’s home loan from a participating lender (like BCU Bank) is guaranteed by the scheme. This means an eligible home buyer could buy a home with as little as 5% deposit and avoid paying Lenders Mortgage Insurance (LMI) – saving you thousands of dollars.
The Regional First Home Buyer Guarantee
If you're looking to buy in regional Australia, then the Regional First Home Buyer Guarantee (RFHBG) may be the one for you. This guarantee is similar to the FHBG, but with a twist. Eligible home buyers still get that sweet 15% deposit guarantee and zero LMI, and could also be eligible for a higher property price cap. That means, depending on your location, you could buy a more expensive home and still get the benefits of the scheme. Plus, you'll be supporting regional communities – win-win!
The Family Home Guarantee
Now, let's talk about the Family Home Guarantee (FHG). This one supports eligible single parents or eligible single legal guardians of at least one dependent to buy a home, regardless of whether they’re a first home buyer or have previously owned a home. With the FHG, you could need as little as a 2% deposit to buy a home, with the rest of the deposit guaranteed by the scheme. Did we mention, there’s no LMI and you’ll get the satisfaction of securing a home for your family – what's not to love?
Eligibility
Of course, there are several eligibility requirements for each of the guarantees – you can find them on our website – but the best way to check whether you’re eligible for these, or any other grants, is to chat to one of our home loan specialists.
You could be a homeowner sooner than you think!
