Looking to buy and think you can’t afford to get into the market?
Think again.
The Government’s recent proposed changes to the First Home Guarantee have opened the door to a huge number of suburbs for first homebuyers by launching five per cent deposits from October 1, instead of next year as it had originally planned.
Through the expanded scheme, the Government will guarantee a portion of a first homebuyer’s loan so eligible buyers can purchase with a significantly lower deposit and not pay Lenders Mortgage Insurance.
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Many banks currently prefer a 20 per cent deposit.
The drop in upfront savings needed makes it significantly easier to enter the market, in theory, as a five per cent deposit on the national median home price of $844,000 would be just $42,200.
A 20 per cent deposit on the same value property would be $168,800.
Prime Minister Anthony Albanese hopes bringing in the five per cent deposit scheme will help more young people into home ownership. Picture: NewsWire / Martin Ollman
Prime Minister Anthony Albanese said he wanted to help young people and first home buyers achieve the dream of home ownership sooner.
“Bringing the start date of our 5 per cent deposit scheme forward will do just that,” he said.
“Labor was re-elected with a clear mandate to bring down the deposit hurdle for first home buyers, and we’re delivering.”
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So, where’s the cheapest place to enter the market in your state?
We’ve crunched PropTrack’s numbers to reveal the suburbs in each state where you’ll need the least in savings to enter the market.
You might be surprised to see just how little you need to hit that magic five per cent deposit.
Click here to find every suburb and town in our searchable table
And, without further ado, here are each state’s top 10s.
NEW SOUTH WALES
Source: PropTrack.
It’s hoped the 5 per cent scheme will help first homebuyers break into the nation’s most competitive housing market. Picture: Jonathan Ng
VICTORIA
Source: PropTrack.
The move could help thousands of Victorians enter the market. Picture: Jake Nowakowski
SOUTH AUSTRALIA
Source: PropTrack.
South Australian buyers can enter the market with as little as $3425 in savings. Picture: Supplied by Knight Frank
QUEENSLAND
Source: PropTrack.
Queenslanders can enter the market with as little as $3375 in savings. Photo – iStock
TASMANIA
Source: PropTrack.
Tasmanian buyers need just $8650 to enter the market. Photo – iStock
WESTERN AUSTRALIA
Source: PropTrack.
Perth downtown city skyline cityscape of Australia at sunset. Photo – iStock
NORTHERN TERRITORY
Source: PropTrack.
Northern Territory buyers can get in with just $12,500 in savings.
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