The Sunshine Coast property market is booming, and for many first-time home buyers, the dream of owning a slice of paradise can feel out of reach. With the rising cost of living, saving for a 20% deposit can seem like an impossible hurdle. The Australian Government’s new Help to Buy Scheme is on the horizon and looks to be a leg up to helping first home buyers get into the property market sooner. We’ve put together this guide with everything you need to know about the new scheme, due to be available soon. In the meantime, you can chat with us about your current finances to get ready to apply for a home loan.
What is the Help to Buy Scheme?
Help to Buy is a game-changer for eligible first home buyers, according to the Australian Government. It’s a shared equity scheme, meaning the government will act as a silent partner in your home purchase, which means:
- The government contributes a portion of the purchase price – up to 40% for a brand-new home and 30% for an existing one.
- This significantly reduces the size of your deposit, allowing you to enter the property market with a deposit of as little as 2% of your purchase price.
How Does Help to Buy Benefit You?
Imagine buying your dream house with a much smaller deposit. It could also mean buying your forever home first up rather than entering the property market at a lower price point. Benefits may include:
- Lower upfront costs: You’ll need less cash upfront which can free up your savings for other expenses or provide a bigger buffer.
- Reduced mortgage repayments: With a smaller loan amount your monthly repayments become more manageable and that can make homeownership a more realistic possibility.
- Faster entry into the market: You don’t have to wait years to save a large enough deposit. Help to Buy allows you to jump on the property ladder sooner.
What are the Eligibility Requirements?
The exact eligibility criteria for the Help to Buy Scheme in Queensland are still being finalised, but here’s a general idea based on the national guidelines:
- You must be a first home buyer, which means you haven’t previously owned a property in Australia (some exceptions may apply).
- You’ll need to meet income caps set by the government.
- You’ll be required to have a minimum deposit of 2% of the purchase price.
- You’ll need to be an Australian citizen or permanent resident.
What are the Ongoing Obligations?
There are a few things to keep in mind when participating in Help to Buy:
- You’ll share ownership of the property with the government in proportion to their contribution (up to 40% for new builds, 30% for existing).
- When you eventually sell the property, you’ll need to repay the government’s contribution plus a share of any capital gains made.
- There may be limitations on renovations or alterations you can make to the property.
How Can SCF Solutions Help You With The Help to Buy Scheme?
The Help to Buy Scheme might seem complex, but SCF Solutions is here to simplify it for you. We understand the intricacies of the program and can help you navigate every step of the process:
- Eligibility assessment: We’ll check your situation and see if you qualify for the scheme.
- Finding the right home loan: We’ll compare options from a wide range of lenders to find the best interest rate and features for your Help to Buy loan.
- Home loan application: We’ll handle the paperwork from start to finish for your home loan, taking care of everything from pre-approval right through to settlement.
- Ongoing support: We’ll be with you throughout your home-buying journey, from application to settlement and beyond.
Important Considerations:
- While the Help to Buy Scheme is expected to launch nationally later this year, final approval in Queensland is still pending. Stay tuned for updates!
- This blog is for informational purposes only and doesn’t constitute financial advice.
Ready to Unlock Your Sunshine Coast Dream?
Don’t let the rising property prices hold you back. Contact SCF Solutions today to discuss your eligibility for the Help to Buy Scheme, and explore how it can help you turn your dream of homeownership into reality. Book a time to chat with us to learn more.
Meet Chris Wilson, the heart of Sunshine Coast Financial Solutions (SCFS). With over a decade of experience in finance, Chris started his journey as a broker with Aussie Home Loans in 2009. His dedication earned him the title of Rookie of the Year in 2010. By 2011, he was ready to build a business based on trust and strong partnerships.
