Buying your first home in Riverstone doesn't have to remain a distant dream. The Australian government's Home Guarantee Scheme offers first time home buyer programs that allow you to purchase property with just a 5% deposit, making homeownership more accessible than ever before.
Understanding the 5% Deposit Scheme
The Home Guarantee Scheme is designed specifically for first home buyers who struggle to save the traditional 20% deposit. This initiative allows eligible buyers to secure a home loan with just 5% of the property's purchase price, while the government guarantees up to 15% of the loan amount.
For Riverstone residents, this means you could potentially buy a home worth $600,000 with just $30,000 as your deposit, rather than waiting years to save $120,000. This scheme removes one of the biggest barriers to entering the property market.
Key Benefits of the Program
The advantages of first time home buyer schemes extend beyond the reduced deposit requirement:
• No Lenders Mortgage Insurance (LMI): Typically, borrowers with less than 20% deposit must pay LMI, which can cost thousands of dollars. Under this scheme, you avoid this expense entirely
• Access to competitive interest rates: Participating lenders offer standard interest rate packages without penalty
• Faster path to homeownership: Reduce your saving time by years
• Stamp duty concessions: Many states offer additional first home owner grants (FHOG) and stamp duty reductions
Eligibility Requirements
To qualify for these first time home buyer programs, you must meet specific criteria:
- Be an Australian citizen or permanent resident
- Be 18 years or older
- Have not owned property before
- Meet income thresholds (currently $125,000 for singles, $200,000 for couples)
- Purchase an existing home under the regional price cap
- Live in the property as your primary residence
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Book a chat with a Mortgage Broker at KM Financial Service today.
The Application Process
Applying for a home loan under this scheme involves several steps that KM Financial Service can help you through:
Pre-approval stage: We'll assess your borrowing capacity and financial situation to determine your loan amount potential. This includes reviewing your bank statements, income documentation, and existing debts.
Property search: Once you know your budget, you can confidently search for properties within your price range in Riverstone and surrounding areas.
Formal application: When you find your ideal home, we'll submit your investment loan application (or rather, owner-occupier application) to participating lenders.
Settlement: Upon approval, you'll proceed to settlement and receive your keys.
Interest Rate Options
Participating lenders offer both variable interest rate and fixed interest rate options. Many first home buyers opt for:
• Fixed rates: Provide certainty with locked-in repayments for 1-5 years
• Variable rates: Often start lower and may include features like offset accounts
• Split loans: Combine both fixed and variable portions
• Interest rate discounts: Many lenders offer special packages for first home buyers
An offset account can be particularly valuable, allowing you to reduce interest charges by maintaining savings in a linked transaction account.
Why Choose Professional Assistance
As your local mortgage broker in Riverstone, KM Financial Service provides access to Home Loan options from banks and lenders across Australia. We understand the local property market and can guide you through the application process efficiently.
Our team works with numerous lenders to find suitable packages that match your financial situation. We'll compare loan to value ratio (LVR) requirements, interest rate offerings, and additional features to secure the right first Home Loan for your needs.
Getting Started
If you're ready to explore buying your first home in Riverstone, the 5% deposit scheme could be your pathway to property ownership. Before you apply for a home loan, it's important to get pre-approved so you understand your purchasing power.
We also assist with investment loans if you're considering your first investment property, and provide ongoing support through refinancing options as your circumstances change.
The current property market conditions in Riverstone present opportunities for first home buyers, and with access to banks and lenders nationwide, we can help you find competitive rates and suitable loan structures.
Don't let deposit requirements delay your homeownership dreams any longer. The Home Guarantee Scheme, combined with professional mortgage broking support, makes buying your first home more achievable than you might think.
Call one of our team or book an appointment at a time that works for you to discuss how the 5% deposit scheme could help you secure your first home in Riverstone.
