Kiwis hoping to buy a first home in Australia have just scored gold! The popular Aussie low-deposit home buying scheme has been opened up to visa holders from across the Tasman. Here’s what you need to know.

Sure, the Kiwis have the All Blacks, the glaciers and landscapes fit for a Hobbit.

But Australia offers New Zealanders something that could deliver more of an adrenaline rush than bungy jumping in Queenstown.

And that’s the chance to buy their first home in Australia with as little as a 5% deposit.

The popular Home Guarantee Scheme (HGS) lets Aussie citizens and permanent residents buy their first home in Australia with just a 5% deposit. There’s a version for regional first-home buyers, too.

Single parents can also use the scheme to buy a home with a 2% deposit.

And Housing Australia has just confirmed to us that New Zealand Special Category Visa (SCV) holders are now considered ‘permanent residents’ for eligibility purposes for the HGS (more on the SCV below).

But first, how does the scheme work?

The HGS helps first home buyers and single parents buy a place of their own even when they have a deposit smaller than the standard 20%.

Essentially, the government acts as a guarantor for the home buyer’s loan, so there is no need to pay lenders mortgage insurance (LMI), which can help you save on upfront costs.

Not paying LMI can save buyers anywhere between $4,000 and $35,000, depending on the property price and deposit amount.

How many New Zealanders could benefit from this change?

Here’s the good news.

We reached out directly to Housing Australia, which runs the HGS, to confirm that New Zealanders can apply for the low deposit scheme.

It turns out that New Zealanders who hold a Special Category Visa Subclass 444 (SCV) are now regarded as permanent residents for the scheme and are therefore eligible to apply.

Of course, there are other eligibility conditions. These include maximum price caps on the home you can buy, with price caps varying across the country.

The most straightforward way to find out if you might be eligible to take advantage of the HGS is to call us. We can walk you through the scheme, and explain whether or not you are eligible to apply.

Not all lenders have signed up to the HGS

No matter whether you’re a dinky-di Aussie or a Kiwi making a fresh start in Oz, it’s important to know that the HGS is not available through every lender.

We can let you know which banks have signed up to the scheme, and help identify loan options from participating lenders that may suit your needs.

It’s also important to know that places within the scheme are limited, and who knows how long New Zealand SCV holders will be considered ‘permanent residents’ when applying for the scheme, so get in touch with us today to get the ball rolling.

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