Home Loans for Single Parents Jun 22, 2021 | Blog Getting onto the property ladder has long been a challenge for single-parent households, and in particular, saving the money for a deposit can make the barrier to entry very high. Fortunately, single-parent households look set to benefit under a new program recently announced as part of the 2021 Federal Budget. Over the next four years, the Family Home Guarantee will enable up to 10,000 households to purchase a home with as little as a 2% deposit. Traditionally, when homebuyers look to take out a loan with less than a 20% deposit, they are normally required to pay lenders mortgage insurance (LMI), which is an additional expense on top of their deposit and other closing costs. Oftentimes, LMI can cost tens of thousands of dollars, making it difficult to get back onto the property ladder. With the Family Home Guarantee, the Federal Government will effectively act as the guarantor on the deposit shortfall up to that 20% level, in the same way as the First Home Loan Deposit Scheme does. The other significant benefit of this program, for single-family households, is that it is not purely for first home buyers. It’s open to anyone who meets the criteria and opens the door for many households who might have thought it impossible to get back into property ownership after a separation or divorce. To be eligible, you need to be a single parent with a dependent child and have an annual table income of less than $125,000. The scheme is open to anyone looking to build a new property or buy an established dwelling and intending to live in it as an owner-occupier. To apply for the program, you must do so through the National Housing Finance and Investment Corporation (NHFIC), and find out who you might be eligible to borrow from, of the range of approved lenders. It’s important to note that borrowers will still need to be able to service the loan based on standard serviceability requirements, like anyone applying for a traditional loan. If you are borrowing with a 98% LVR, there are some risks associated with that. It’s important that you are able to make your repayments based on your current income, expenses and any debts that you might have. As we’ve seen over the last few years, the First Home Loan Deposit Scheme has been very popular and has helped thousands of first home buyers enter the marketplace. It is anticipated that the Family Home Guarantee will be no different. This initiative will begin on 1 July 2021. Why YFA? Our motto has always been “Honesty” and Over 20 years, we have always believed that understanding the customer requirement should be the first priority. We are very passionate about helping individuals and families to identify financial goals with the correct focus on their plans for the long run through us finance broker Sydney. We feel proud and blessed to win awards because of successfully assisting people to achieve financial success. What makes us stand out from others is the utmost trust from our clients who have trusted us. We have always aim to provide updated yet useful blogs by adhering to traditional values of transparency and integrity, while continuing to bring steady and consistent performance over the long term. Our home loan broker Sydney is always there to assist you. We love going beyond the bolts of financial crisis in an easier manner just to help people believe that money never blocks their happiness. Contact Rajan Khatak our Mortgage Broker Drummoyne, NSW try to the best of our abilities to be a sane, and trusted entity in the sector of Wealth Management via providing services in Finance & Insurance. Credit Rep Number – 418883 | ABN – 8119516623 Submit a Comment Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment.