Navigating First Home Buyer Schemes in Tasmania: A Guide for First-Time Buyers

Buying your first home is a huge financial decision, and while it’s exciting, it can also be overwhelming, especially when it comes to navigating the various grants and concessions available. That’s where we come in.

At One Stone Finance, we specialise in providing expert home loan advice. We’re the go-to mortgage brokers for helping first home buyers get into the market with the best possible financial support. Our job is to help you unlock the door to your dream home!

First Home Guarantee Scheme

The First Home Guarantee (FHBG) is part of the Home Guarantee Scheme (HGS), an Australian Government initiative designed to help first-time buyers purchase a home sooner. With this scheme, part of an eligible buyer’s home loan is guaranteed by Housing Australia, meaning you could secure a home with as little as 5% deposit without paying Lenders Mortgage Insurance (LMI).

From 1 July 2024 to 30 June 2025, 35,000 places will be available under this scheme.

Eligibility Criteria:
To apply for the FHBG, you must be:

• An individual or two joint applicants
• An Australian citizen(s) or permanent resident(s) at the time of entering the loan
• At least 18 years old
• Earning up to $125,000 (individuals) or $200,000 (joint applicants)
• Intending to live in the purchased property
• A first home buyer or a previous owner who hasn’t owned property in Australia for the past 10 years

Important Note: Depending on the suburb, the maximum purchase price for a property may be $600,000 or $450,000. It’s important to check the specific suburb using the postcode search tool here.

Contact us at One Stone Finance for more details, including the full FHBG eligibility criteria. We know the ropes, so you don’t have to!

Family Guarantor Loans

A Family Guarantor Loan allows a family member to guarantee part of your home loan. This means if you cannot make your repayments, your guarantor will be responsible for covering the debt.

These loans are typically structured as two separate loans:

1. The majority of the loan (usually 80%) is secured by the home you’re buying. Your guarantor doesn’t need to guarantee this portion.
2. The smaller loan (usually 20%) is secured by your guarantor’s property.

Once you’ve paid off the smaller loan, the guarantee can be removed, and your guarantor is no longer liable. You can even make extra repayments to remove the guarantee sooner. We can help you explore strategies for doing this.

Eligibility Criteria:

• You must be able to service the total repayment amount.
• Your guarantor must be an immediate relative (mum, dad, sibling, grandparent, spouse, partner, or child).

For more information, including full Family Guarantee eligibility criteria, reach out to One Stone Finance.

MyHome Shared Equity Program

The MyHome Shared Equity Program is a Tasmanian Government initiative aimed at helping first home buyers purchase or build a home. Under this program, Homes Tasmania contributes up to $150,000 or 30% (whichever is lesser) toward your property purchase.

This scheme is particularly beneficial if you have sufficient income and a clear credit history but lack a savings deposit. However, bear in mind that Homes Tasmania will own part of your property under this scheme.

Eligibility Criteria:
To qualify for the MyHome Shared Equity Program, you must:

• Be at least 18 years old and an Australian citizen or permanent resident
• Have at least 2% of the purchase price as a deposit
• Not own or have an interest in any other property (other than land you plan to build on under the program)
• Be able to pay loan establishment fees and ongoing repayments
• Live in the house you buy (it must be your main residence)

You don’t have to be a first home buyer to access this scheme, but if you’re not, you’ll need to meet additional requirements. Contact us at One Stone Finance to learn more.