Kiwis Qualify for First Home Guarantee!

Most Kiwi home buyers will be aware of the nasty kick in the teeth Lenders Mortgage Insurance (LMI) that punishes you for not having a 20% deposit.

Aussies in the same boat could bypass this hideous system by being granted a First Home Guarantee (FHG), which meant you could buy your first home with as little as 5% deposit and not get walloped with LMI. Kiwis though were puzzlingly left out of this scheme.

Well, Housing Australia have now seen fit to include NZers (on Special Category (444) Visas) in the FHG party. Hoorah!!

From 1 July, SCV holders can apply for one of the 35,000 annually granted guarantees when purchasing their first home in Australia (guess what? It doesn't matter if you have owned a home in NZ). Here's the basic criteria:

• Income cap - singles up to $125k pa; couples up to $200k pa

• Price cap - Brizzy, GC and Sunny Coast $700k. Rest of QLD $550k

• First home purchase in Australia

• Owner occupied (not investment)

The FHG can save buyers up to $36,000 in needless LMI costs.

Happy days!!