Yes, the first home owners grant (FHOG) can be used as part of your deposit. Generally, the lender that you qualify with will apply for the grant on your behalf if you’re eligible and is advanced at the time of settlement.
Typically, you’d require at least a 5% deposit and that can include the FHOG. In order to qualify for a 95 per cent home loan:
- Deposit: A 5% deposit and this include the FHOG.
- Steady income and employment: You should be earning a regular income to support your mortgage repayments.
- Genuine Savings: Most lenders require the deposit to have been saved by the borrower himself, however, genuine saving’s not a requirement with all lenders.
- Property location: Lenders have postcode restrictions for the properties they can accept as security.
- Credit history: Lenders prefer a clear credit history but a few adverse listings can be considered when borrowing up to 95% by select lenders.
- Credit scoring: There can be many reasons for having a poor credit score but some of our lenders assess it on a case by case basis using a common sense approach.
Speak with one of our specialist mortgage brokers by giving us a call on 1300 889 743 or by filling in our free assessment form to find out if you qualify for a low deposit home loan.
Cheers,