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The First Home Guarantee is a government initiative designed to help eligible first-home buyers purchase a property with just a 5% deposit. This can be a game-changer, allowing you to buy with a lower deposit while avoiding Lenders Mortgage Insurance (LMI), which can add thousands of dollars to your loan costs.
Pros:
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Save Money: Avoid LMI fees, which can be significant.
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Buy Sooner: A smaller deposit means you can enter the property market faster.
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More Choice: A wider range of properties becomes available to you.
Cons:
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Higher Interest Rates: Borrowing more often means a higher interest rate.
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Negative Equity Risk: If property prices fall, you could owe more on your loan than your home is worth.
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Strict Eligibility Criteria: Not everyone qualifies for the scheme.
Is the Scheme Right for You?
Deciding whether to use the First Home Guarantee is a personal choice. Consider your financial situation, risk tolerance, and long-term goals carefully.
Things to Remember:
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The scheme is not a magic bullet. Be realistic about your budget and expectations.
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Homeownership is a long-term commitment. Ensure you’re financially prepared for the ongoing costs of owning a home.
Take the Next Step!
Ready to learn more about how the First Home Guarantee can help you get into your first home? Our team of mortgage specialists is here to assist you.
Click the button below to schedule a free consultation and take the first step toward homeownership.
We hope this information helps you make an informed decision about the First Home Guarantee.
