The Australian government is planning to implement the Home Guarantee Scheme in the year 2024, which provides a financial boost of $20,000, to help single parents and first-time home buyers. This program is the main part of the government to help persons to get homeownership who found financial obstacles to buying the home like expensive down payment or mortgage insurance premiums. Y
ou must hold the necessary details like requirements for eligibility, the process for applying, and the possible advantages for this.
$20,000 Cash Boost Australia 2024
The exciting offer was there by the $20,000 Cash Boost Australia 2024 for eligible Australians, especially single parents and first-time buyers to become homeowners quickly with less financial burden.
With the help of this effort, many people can overcome their customary obstacles like hefty deposits and mortgage insurance premiums. Kindly get informed and updated by the government’s various websites till the date is verified.
| Name of the Program | Home Guarantee Scheme |
| Cash Boost | $20,000 |
| Eligibility to apply | Single parents, First-time homebuyers, or single legal guardians |
| Limit of Income | Single applicants: $125,000 , Joint applicants: $200,000 |
| Deposit Requirement | As low as 5% |
| Date of Payout | Expected in 2024 |
What is the $20,000 Cash Boost?
Under the Home Guarantee Scheme, the $20,000 cash boost is added. It enables eligible Australians to buy the property with a small amount of 5% without depositing any of the amount of the mortgage insurance. To support the eligible buyers this incentive is made by directly providing them with the upfront costs of the homeownership, such as property improvements, moving expenses, and initial payments on the property.
The $20,000 cash boost is speculative in nature and the full details about this will be soon confirmed by the Australian government.
Eligibility Criteria for the $20,000 Home Guarantee Scheme
For the Home Guarantee scheme, the eligibility criteria are set by the organization. It assists a wide range of buyers. The eligibility criteria are as follows:
- Australian Citizenship: The person must be a citizen of Australia.
- Age Requirement: The person must be the age of 18 years.
- Income Limit:
- Single individuals Must earn equal to $125,000 or less annually.
- The Joint applicants Must have a combined income of $200,000 or less than it.
- First-Time Homebuyers: The first-time homebuyers can take advantage of this cash. This is only for those persons who have been living for the past 10 years but didn’t hold any property in Australia.
- Family Home Guarantee: The single parents or the guardians of the children who do not hold any of the property are eligible to take advantage of this.
Benefits of the $20,000 Cash Boost
The various benefits are given to the eligible homebuyers:
- Lower Initial Deposits: As the deposit requirement is low, the buyers can get the property easily without the high deposit.
- Mortgage Insurance Coverage: Those buyers who are holding a deposit under 20% are mandatory to deposit the Lender’s Mortgage Insurance (LMI). Under this scheme, the insurance is fully covered and one can save many dollars.
- Targeted Support: Single parents and first-time homebuyers, will get benefit from this scheme.
- Reduced Financial Barriers: To cover the additional expenses like renovations, moving costs, and other purchases related to the home, the cash boost is designed.
Application Process for the $20,000 Cash Boost
Here is the application process if you meet the eligibility requirements. Check it and apply for the Scheme.
- Confirm Eligibility: Make sure that you meet the eligibility criteria given above.
- Find a Participating Lender: Only approved lenders can give this scheme, so all the persons are suggested to choose the financial institution wisely.
- Submit Your Application: Submit the application by the lender, fill in all the necessary details, and attach all the necessary docs and the property information that you are going to purchase.
- Purchase and Move-In: Once the application form is approved, the buyers can complete the purchase process and shift into the property within a given period.
Key Considerations
- Owner-Occupier Only: This scheme is only for the person who purchased the house to live in. You can’t use that property for investment purposes while getting the amount.
- Loan Size: The mortgage amount will get increased, if the larger amount of loan is taken for the smaller deposit. It is important to take the commitments of Finance in the long term.
Frequently Asked Questions (FAQs)
For the investment property, will the cash boost be used?
Ans: No, this is only for the owner-occupier properties