Buying a home in Australia can be a complex process, especially for Kiwis. Navigating forms, regulations, and various costs can be overwhelming, which is why having an experienced mortgage broker is invaluable.
One unexpected cost that often surprises home buyers is Lenders Mortgage Insurance (LMI). LMI is applied when borrowers take out a loan exceeding 80% of the property's value. The cost of LMI can be significant, with some quotes exceeding $30,000.
While some professions, such as lawyers, doctors, accountants, and registered nurses, may be eligible for an LMI waiver, not everyone qualifies. For New Zealand citizens, there is a great alternative—the first home guarantee (FHG).
The First Home Guarantee allows eligible borrowers to bypass LMI, thanks to a government guarantee that covers up to 15% of the property value. In the event of a shortfall, the Federal Government steps in to cover the difference, making this a cost-effective solution for many home buyers.
Best of all, the FHG is available to New Zealand citizens on a 444 visa. With 35,000 spots available annually, it’s a valuable opportunity to save tens of thousands of dollars and access more favorable loan terms.
To qualify for the FHG, you’ll need:
To access the FHG, you must apply through a participating lender. Not all banks offer this scheme, so working with a knowledgeable broker is crucial. If you’re a Kiwi home buyer looking for no LMI, reach out to Paul Davey at UNO Home Loans for expert guidance on taking full advantage of the First Home Guarantee.
Paul Davey, a Kiwi, now based in the Sunshine coast specialises in helping other Kiwis to buy in Australia.
Whether you're based here now, moving here, buying from NZ Paul can help
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