Your Guide to the “Help to Buy” Program: How SBS Lending Can Help You into Your New Home

The dream of homeownership is a cornerstone of the Australian way of life. But with rising property prices, saving a sufficient deposit has become one of the biggest hurdles for many aspiring homeowners. The good news is, the Australian Government’s “Help to Buy” program is here to make that dream a reality for more Australians.

At SBS Lending, we’re dedicated to helping you navigate the complexities of the home loan market and find the right solution for your unique situation. This blog post will break down the essentials of the “Help to Buy” program and explain how our team can support you every step of the way.

What is the “Help to Buy” Program?

“Help to Buy” is a federal government initiative designed to assist low to middle-income earners purchase a new or existing home with a smaller deposit and a smaller mortgage. It’s a shared equity scheme, meaning the government will co-own a portion of your property in exchange for a financial contribution.

Here’s how it works in a nutshell:

  • Government Contribution: The government will contribute up to 40% of the purchase price for a new home and up to 30% for an existing home.
  • Reduced Deposit: You’ll only need a minimum deposit of 2% of the property’s value.
  • No Lenders Mortgage Insurance (LMI): A major benefit of this program is that you won’t need to pay LMI, a significant cost usually associated with deposits under 20%.

This shared equity arrangement means you take out a smaller home loan, which can lead to lower repayments and help you get into the property market years sooner. You won’t pay rent on the government’s share, and you can buy back their equity stake over time as your financial situation improves.

Are You Eligible for “Help to Buy”?

The program has specific eligibility criteria to ensure it helps those who need it most. While the full list can be found on government websites, key criteria include:

  • Income Caps: You must not exceed an annual taxable income of $100,000 for individuals or $160,000 for couples and single parents.
  • Citizenship: You must be an Australian citizen aged 18 or over.
  • Property Ownership: You cannot currently own any other property in Australia.
  • Owner-Occupier: The home you purchase must be your principal place of residence.
  • Property Price Caps: The property you wish to buy must be within the price caps for your state or territory. These caps vary by region and are subject to change.

How SBS Lending Can Be Your Partner

The “Help to Buy” program is an exciting opportunity, but securing a home loan with a participating lender can still be a daunting process. This is where SBS Lending comes in. We understand the program’s requirements and the specific needs of first-time buyers.

Our team of experienced brokers will:

  1. Assess Your Eligibility: We’ll help you determine if you meet all the necessary criteria for the “Help to Buy” program.
  2. Navigate Participating Lenders: Not all banks and financial institutions offer loans through this scheme. We have relationships with a wide range of lenders and can identify those who participate in the program.
  3. Secure Your Home Loan: We’ll help you apply for the home loan you need to cover your portion of the purchase price, ensuring you get a competitive rate that aligns with your financial capacity.
  4. Simplify the Process: The paperwork and application process can be complex. We’ll guide you through every step, making it as smooth and stress-free as possible.

A Helping Hand for Your Homeownership Journey

The “Help to Buy” program is a significant step towards addressing housing affordability in Australia. It offers a genuine pathway for many people who have been locked out of the market. At SBS Lending, we are passionate about helping our clients achieve their homeownership goals.

If you believe the “Help to Buy” program could be your key to a new home, contact us today for a consultation. We’ll provide you with expert advice and personalised support to help you on your journey to owning your own slice of Australia.

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📌 Disclaimer
The information provided in this blog is intended for general informational purposes only and should not be construed as legal, financial, or business advice. While we strive to provide accurate and up-to-date information, every business and individual’s situation is unique. Therefore, we strongly recommend seeking professional legal or financial advice tailored to your specific circumstances before making any decisions. Relying solely on the content of this blog without expert guidance may expose you to legal or financial risks

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