Lenders Mortgage Insurance

Lenders Mortgage Insurance

If you are eager to become a homeowner but are concerned about the cost of Lenders Mortgage Insurance (LMI), then the First Home Guarantee could be the solution for you. This initiative, supported by the government, can help you bypass LMI expenses and enjoy better interest rates. This can help you achieve your dream of owning your first home sooner!

Understanding How to Qualify for Eligibility

It is important to understand the eligibility criteria for the First Home Guarantee scheme. To qualify, applicants must meet certain prerequisites.

  1. All applicants must be Australian Citizens or Permanent Residents.
  2. A maximum of 2 applicants.
  3. A minimum age of 18 years.
  4. Single earners with an income up to $125,000, and couples earning up to $200,000 based on the last financial year’s Notice of Assessment.
  5. First home buyers or previous homeowners who haven’t owned a property in the past ten years.

Moreover, different property price caps are applicable to each state, ensuring a fair distribution of benefits:

State
Regional Centre
All other Regional Areas
NSW
$900,000
$750,000
VIC
$800,000
$650,000
QLD
$700,000
$550,000
WA
$450,000
SA
$450,000
TAS
$450,000
Territory
Regional Area
ACT
Not applicable
NT Regional
$600,000
Jervis Bay Territory & Norfolk Island
$550,000
Christmas Island and Cocos (Keeling) Islands
$400,000

It’s imperative to recognise that the First Home Guarantee is not universally embraced by all lenders. For a comprehensive list of participating lenders, please refer to the official website under the section titled Participating Lenders.

The Allure of First Home Guarantee

Avoidance of LMI Costs

One of the primary benefits of the First Home Guarantee is the substantial savings it offers by allowing eligible participants to bypass Lenders Mortgage Insurance. This can translate into savings amounting to tens of thousands of dollars, making homeownership more financially feasible.

Better Interest Rates

Participants in the scheme typically enjoy more favourable interest rates compared to standard applications with a low deposit. This not only reduces the overall cost of borrowing but also makes monthly repayments more manageable, providing financial relief to aspiring homeowners.

Expeditious Homeownership

The First Home Guarantee aims to expedite the process of acquiring your first home. With a government guarantee and potentially lower interest rates, eligible applicants may find themselves on the fast track to homeownership, turning their dreams into reality sooner than expected.

Flat-lay-real-estate-concept

The “First Home Guarantee” initiative is a ray of hope for those who aspire to own a property without bearing the financial burden of Lenders Mortgage Insurance. The initiative provides a government-backed guarantee, which unlocks favourable interest rates, making the journey towards homeownership smoother and more affordable.

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