Zippy Financial Zippy Financial

Do You Want a First Home Buyer Scheme Spot?

first home buyer

35,000 first home buyer scheme spots became available on 1st of July 2022. If you are keen to get a place in the scheme and buy your first home sooner, here is how.

Have you heard about the federal government’s Home Guarantee Scheme? It was previously called the First Home Loan Deposit Scheme. It allows you to buy your first home with just a 5% deposit and pay no lenders’ mortgage insurance (LMI). 

First home buyers who use the scheme fast-track their property purchase by 4 to 4.5 years on average, because they don’t have to save the standard 20% deposit. Better yet, not paying LMI can save anywhere between $4,000 and $35,000 depending on the property price and the deposit amount.

But competition for the 35,00 spots is fierce, so here is how to give yourself the best possible chance of security a place.

Get the Jump on the Competition

Getting your 2021/22 tax return in order asap can give you the inside lane when it comes to jagging one of the 35,000 FHB spots. That’s because lenders require your most recent financial information when assessing your home loan application, and that will most likely include your latest tax return.

So, now is the time to:

1. Speak to your employer to make sure they will provide your PAYG summary in a timely fashion.

2. Book an appointment with your accountant in July.

3. Compile all your work-related expenses. 

How Can We Help?

Getting your tax return completed is just one (important) step in the process, but it is far from the only one. 

When assessing your application, lenders require you to provide them with an accurate picture of your monthly expenses and discretionary spending, which can take a little time to put together. And that is where we come in.

Not only can we help you calculate your monthly budget, which includes your income and expenses, but we can also help you crunch the numbers to give you an idea of your borrowing capacity, and therefore, what you can afford to buy.

This is important if you want a spot in the Home Guarantee Scheme because it has borrowing caps depending on where you want to buy. 

Finally, with interest rates almost certain to keep increasing over the next 12 months, it is also important to factor in a little buffer too.

Frequently Asked Questions

What is the Home Guarantee Scheme?

The Home Guarantee Scheme is a federal government initiative that allows first-time homebuyers to purchase a home with just a 5% deposit, without the need for lenders' mortgage insurance (LMI).

How many spots are available in the Home Guarantee Scheme?

As of July 1, 2022, 35,000 spots became available in the Home Guarantee Scheme.

What can I do to improve my chances of securing a spot in the scheme?

To improve your chances, it's crucial to have your most recent tax return and other financial documents in order. Zippy Financial can assist you in preparing these documents and calculating your borrowing capacity.

What is lenders' mortgage insurance (LMI) and how does the scheme help?

LMI is an insurance that lenders require when you have less than a 20% deposit. The Home Guarantee Scheme allows you to avoid paying LMI, saving you between $4,000 and $35,000 depending on the property price and deposit amount. 

Are there borrowing caps in the Home Guarantee Scheme?

Yes, the scheme has borrowing caps depending on where you want to buy. Zippy Financial can help you understand these caps and calculate your borrowing capacity. 

How does Zippy Financial assist in the application process?

Zippy Financial helps you calculate your monthly budget, which includes your income and expenses. They can also assist in determining your borrowing capacity and guide you through the application process. 

Are the spots in the Home Guarantee Scheme allocated on a first-come, first-served basis?

Yes, the spots are generally allocated on a first-come, first-served basis. It's advisable to act quickly as the spots are limited and highly competitive.

Get the Ball Rolling Today

Places in the Home Guarantee Scheme are generally allocated on a first-come, first-served basis, and don’t let this year’s expansion to 35,000 spots lull you into a sense of complacency as they will be snapped up quickly.

So, if you are a first home buyer looking to crack into the property market sooner rather than later, get in touch today and we can explain the scheme to you in more detail, help check if you are eligible and take steps to get the ball rolling.  We are ready to help you apply through a participating lender!

Phone: 1300 855 022


Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business. 

About the Author:   

Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.   

Connect with Louisa on Linkedin.   

Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).   

Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial.  r-less normal distribution of letters. making it look like readable English.


Service Locations

ZF Pop Up | Zippy Financial

Comparison Rate calculated on a secured loan amount of $150,000 for a term of 25 years. WARNING: This Comparison Rate is true only for the example given and may not include all fees and charges. Different terms, fees and other loan amounts might result in a different Comparison Rate. Fees and Charges Apply. Terms and Conditions are available on request.