Introducing a collection of inspiring feature stories that highlight the real-life experiences of individuals who have successfully navigated the path to homeownership with the help of the First Home Guarantee. These stories offer a glimpse into the journeys of determined individuals who overcame challenges, made sacrifices, and seized opportunities to achieve their dream of owning a home. From saving for a deposit to navigating loan applications and approvals, these stories showcase the power of perseverance and the impact of government initiatives in supporting first-home buyers.
Purchasing an Apartment in Sydney with the help of the Home Guarantee Scheme
The broker had a first meeting with Amelyn Smith (not her real name) in September 2021. At that time, Amelyn had put down a 5% deposit on an apartment in Sydney. She was really keen to take her first step in property investing by buying her first apartment.
Amelyn Smith works two jobs. She is an online shopper for a major supermarket on a part-time basis and at the same time works as an accountant in a casual role for a food chain. After we found out that Amelyn recently switched from being a sole trader to a casual role with the food chain, we requested Amelyn to wait until she has completed 6 months of employment. A requirement of most banks for applicants in a casual role is 6 months of straight employment with the same employer.
An application was submitted in March 2022 once we have established 6 months of employment as an accountant. The loan was conditionally approved and a spot was provided by Bank N for the First Home Loan Deposit Scheme.
It took 6 months before the apartment was registered. With the help of the Home Guarantee Scheme and Bank N, Amelyn’s application was formally approved on 25 November 2022, and she waited eagerly for the title registration. Finally, on 12 December 2022, settlement day arrived, and Amelyn became a proud homeowner of a property in Campbelltown, NSW.
Not only did Amelyn achieve her dream of homeownership, but she also received $10,000 FHOG after settlement and did not pay loan mortgage insurance, making her journey even more rewarding. Through perseverance and the assistance of the Home Guarantee Scheme, Anna was able to overcome the challenges and accomplish her goal of becoming a first home buyer.
Registered Nurses buying a home with First Home Guarantee Scheme
Meet our clients, Rose and Will (not their real names), who made their dream of owning a house come true with the help of the First Home Guarantee. Rose works as a registered nurse and Will as a utility staff, earning a combined income of $91,079 annually. With a dependent to support, it wasn’t easy for them to save up for a house, but they were determined to make it happen. Their savings amounted to $30,000 so the only way they can own a house is through the FHG where they only need a 5% deposit and did not pay loan mortgage insurance.
In the beginning, they were only searching for apartments, thinking this is all they can afford and the stamp duty exemption in Queensland for first-home buyers is for purchases up to $500,000. Any purchase above $500,000 will attract stamp duty.
They wanted to buy an established house and their combined incomes can support a more expensive property. They just didn’t have enough deposit to purchase a house for $605,000 because of the stamp duty expense. What they did have is a 5% deposit for a purchase price of $605,000. The broker helped the client take out a personal loan to cover the additional stamp duty that they need to pay. Personal loan applications do affect your credit score. In this case, the application with Bank N still got through and was approved despite the personal loan application.
After finding the perfect property in Willow Vale, QLD, priced at $605,000, they submitted their application on June 27. They received pre-approval for the scheme on July 13, and the contract of sale was sent to the lender on July 19. On August 2, their application was formally approved, and they eagerly awaited settlement day.
Finally, on September 21, their dream became a reality, and they moved into their new home with the help of the First Home Guarantee scheme. We are so proud to have played a part in making their dream come true!
Catherine’s Success Story with the First Home Guarantee Scheme
Our first home buyer client, Catherine (not her real name) had her sights set on a brand new property in Schofields, New South Wales. Her mother helped her with the 5% deposit for the apartment. With a deposit of $28,250 and a scheme placed in Bank N, she was one step closer to making it her own. But when the title was registered, her servicing was no longer evident due to increased rates.
Thankfully, Catherine had submitted an application with Bank H and found that her borrowing capacity was much better with them. She withdrew her scheme place from Bank N and obtained another scheme place in Bank H.
Finally, on November 25, 2022, Catherine was able to make her dreams a reality with the help of the First Home Guarantee (FHBG). She purchased the property on Manchester Drive, Schofields, NSW for $526,000 and became a proud homeowner!
Watch this to learn more about the Government Schemes and Grants available.
Maria Papa is a senior property and finance expert specializing in home loans, investment loans, self-employed loans, alt doc loans, car loans, personal loans, and loan protection. She has offices in Sydney, Melbourne, and Manila. If you have questions, you can call Maria at 0430 144 008 or email her at mpapa@maverickfinance.com.au
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