Guide to Buying your First Home

16 GUIDE TO BUYING YOUR FIRST HOME If you are buying a new home in Victoria, you may be eligible for the FHOG (First Homeowners Grant). This is only for new homes up to the value of $750,000 you could receive $10,000 from the government towards your home. Better still, if you buy in a regional area you could receive $20,000. Some of the regional areas are not far out of Melbourne and are well worth considering for the extra $10,000. To mention one of my favourites that qualifies for the $20,000 Home Grant, Austin in Lara is hard to beat. Located on the Melbourne side of Geelong. Lara has a lot to offer with all the facilities already in existence including shops, schools and trains to Melbourne. It will be the best quality project in the Lara area and this evident the moment you arrive at stunning sales office. There has been years of planning by the developer to achieve design excellence and this will be demonstrated through the many parks and gardens. If you, your partner or any other person purchasing with you have ever owned a home or part there of, previously none of you will be entitled to the FHOG. These amounts of $10,000 or $20,000 are considered as part of your deposit when you are talking to the bank. These grants can end at any time, so this is all the more reason for getting your purchase underway as soon as possible to make sure you get this massive incentive from the government. First Home Loan Deposit Scheme The Australian Government commenced this deposit guarantee scheme in January 2020. It is not a cash payment, it is a guarantee. It is designed to assist first time home buyers purchase a home sooner. It will allow people on low to middle incomes to buy a home with only 5% deposit by providing a guarantee of an amount taking your total deposit to 20% of the purchase price. By providing this guarantee to 20% there will be no need for the purchaser to pay the mortgage insurance. Mortgage insurance is necessary on any home loan where the deposit provided is less than 20%. This will save those eligible for the FHLDS many thousands of dollars.