50,000 Places Now Open for Home Guarantee Schemes

50,000 Places Now Open for Home Guarantee Schemes

From July 1st 2024, 50,000 new spots are now available for home buyers who need a smaller deposit through the three Home Guarantee Schemes.

The federal government’s Home Guarantee Scheme, which includes the First Home Guarantee, the Regional First Home Buyer Guarantee, and the Family Home Guarantee, is now accepting applications for FY25 spots. This scheme, managed by Housing Australia, allows eligible buyers enter the property market sooner by providing them with the option of securing a mortgage with a low deposit without paying Lenders Mortgage Insurance (LMI).

Eligible buyers can apply for a loan with as little as a 5% deposit for the First Home Guarantee or the Regional First Home Buyer Guarantee, and a 2% deposit for the Family Home Guarantee. The government then guarantees the remaining amount.

Starting July 1, the available spots are:

  • 35,000 for the First Home Guarantee (FHBG)
  • 10,000 for the Regional First Home Buyer Guarantee (RFHBG) until June 30, 2025
  • 5,000 for the Family Home Guarantee (FHG) until June 30, 2025

Since January 2020, over 160,000 Australians have bought or built homes with the scheme’s help. The scheme’s share of the first home buyer market has grown significantly, with almost one in three first home buyers in 2022-23 using it, compared to one in seven in 2021-22.

With the popularity of these schemes in mind, the government expanded the criteria last year to allow more buyers to apply. This included allowing friends, siblings and other family members to apply, opening up the First Home Guarantee to non-first home buyers who haven’t owned property in Australia in the past 10 years and enabling legal guardians to access the Family Home Guarantee.

Wondering whether these schemes could apply to you? Get in touch with our team today to find out what schemes and incentives you could take advantage of to make your home buying dreams a reality.

Eight ways to spring clean your finances before applying for a loan

Eight ways to spring clean your finances before applying for a loan

We often associate Spring with renewal, fresh beginnings and cleaning and decluttering at home, but what about your finances? As the real estate market ramps up, there’s no better time to embark on a financial spring clean, especially if you’re in the market to buy.

A clean financial state not only improves your chances of securing a mortgage, but also sets you up for a more stable financial future – so let’s look at some of the ways you can tidy up your finances:

Refresh (or set) your budget

It’s easy to set and forget a budget – or not set one at all.

Dinners out, streaming subscriptions, coffees and impulse shopping can quickly add up. When applying for a home loan, this spending is what lenders tend to scrutinise – so why not clean this spending up now. Have a look at our previous article, How your Daily Spending is Impacting Your Borrowing Power for some tips.

Review your credit score

Do you know what your credit score is? Or how you can improve it? Money Smart have made is easy with their credit score guide: https://moneysmart.gov.au/managing-debt/credit-scores-and-credit-reports

Cancel or consolidate subscriptions

Netflix, Disney+, Kayo, One Pass, Amazon Prime, gym memberships – monthly subscriptions can quickly add up, and for many of us they are often left unused.

Why not look at all of the weekly/monthly/annual subscriptions you have and then decide what can stay, go or swap for a cheaper (or free) option. You may find that you end up saving hundreds each month on subscriptions you simply don’t need.

Reassess your financial goals

Do you have financial goals? If so, when’s the last time you checked in with them? If not, why not start now? By setting a goal, you have something to work towards and be aware of.
Some great financial goals to get you started include:

  • Sticking to a budget
  • Increasing your income
  • Saving for a house deposit
  • Putting money towards retirement
  • Breaking the paycheck-to-paycheck cycle

Re-think your spending

Have you ever stopped to look at what you’re spending, where you’re spending it and how much you’re spending?

You might be surprised to find that those small regular expenses quickly add up and impact your saving goals – and these expenses are often what lenders scrutinise.

Have a look at your income and expenses as a whole and see where there’s room to reduce expenses, increase savings or change your spending habits to be more in line with your financial goals.

Take inventory of debts

What money comes out of your account each month? Could you consolidate or remove some of those debts? Paying off your various debts via a single loan with a competitive interest rate not only helps you save money, it also leaves you with one simple payment date each month. This, in turn, may help reduce financial stress.

Debt consolidation is something we can help you with. Want to get started? Contact us today.

Prepare for the unexpected

Accidents happen, illness occurs, appliances break and all when you least expect it. An emergency fund can be the difference between an event being a crisis or an inconvenience and it’s so important that you make sure your emergency fund is fully funded and up to date.


Three to six months of essential expenses saved in a separate bank account is the general rule of thumb for an emergency fund, but even a small amount can make a big difference. If you don’t have the funds to transfer right away, why not start small and make a plan to build that fund with weekly or monthly deposits.

Make sure you’re getting the best deal

Are you paying too much for your insurance or household bills? Whilst many companies offer incredible deals to sign up with them, very few companies offer great deals or incentives for existing customers.

Many of us are too busy (or just don’t think about it) to check whether or not we’re getting the best deal. This typically means that we’re spending extra money each month for no reason.

Not sure where to start? We recommend comparing rates and deals on the below:

  • Utilities (gas, electricity, water)
  • Insurances (home, health, car)
  • Internet and Phone Plans

Also be sure to let your current provider know that you’re looking for a better deal. More often than not, they’ll offer you a discount or match the price to retain your business.

Ready to get started?

By reviewing your credit, improving your financial health and rethinking your spending, you’ll be well on your way to achieving your homeownership goals.

Need some help to get started? Contact us today and let’s get ready to welcome the summer in your new home.

What is a Bridging Loan and When Should You Use It?

What is a Bridging Loan and When Should You Use It?

Finding your dream home when you haven’t yet sold your previous home can be stressful – but that’s where bridging finance can help.

What is a Bridging Loan?

A bridging loan (or bridging finance) is short-term loan, generally lasting for up to 12 months or until the sale of your old property.

The idea is that the loan creates a financial “bridge”, allowing homeowners to purchase a property before selling their previous one – but there are many aspects to this style of loan that should be considered before signing.

How does a bridging loan work?

Here is a quick example to show you how the process may work

What is bridging finance and how does it work?


What are the benefits of a bridging loan?

  • Fast Approval
    Bridging loans are typically approved quickly, often within a few days, allowing you to secure your dream home faster.
  • Convenient
    A bridging loan allows you to look for and purchase a property without having to wait for your current home to sell. This means you could purchase the dream home you find unexpectedly – or secure a place to live without having to worry about renting between selling and purchasing etc.
  • Flexible Repayments
    The structure of your loan can vary, however, bridging loans typically offer flexible repayment terms, including interest-only repayments, lump sum repayments or the option to repay the loan once your old property has sold.
  • No Need for Temporary Accommodation
    If the timing is right with your bridging loan and your sale/purchase, it’s possible to avoid the cost and hassle of having to rent a home, living with friends or relatives or negotiating a longer (or shorter) settlement period to ensure you have somewhere to live.
  • Avoid Property Chains
    Bridging loans can help you avoid property chains, which can be complex and time-consuming, allowing you to move into your new home faster.
  • Flexibility
    Bridging loans provide flexibility and can be tailored to your unique financial situation, giving you peace of mind knowing that you have the financial support you need to purchase your dream home.


What are the downsides of a bridging loan?

  • Time limits12 months can go by very quickly and a time limit may mean you have to sell your old property at a lower than expected price just to get the sale finalised. If you don’t sell your home in the required time, you could be left with a large interest bill or risk the bank stepping in to sell your property.
  • The selling price risk
    Speaking of lower selling prices, if your property sells for less than expected you may be left with a larger ongoing loan amount – increasing repayments, interest etc and potentially causing financial difficulty.
  • Additional Costs
    Bridging finance may require two property valuations (your existing and new property) which could mean two valuation fees, as well as other fees and charges that come with the loan.
  • Termination Fees
    If your current lender doesn’t offer a bridging loan, you’ll need to switch to a lender who does offer these loans – potentially resulting in early exit fees from your current loan.
  • Interest and Interest Rates
    Interest is usually charged on a monthly basis, so the longer it takes to sell your property, the more interest your new loan will accrue. If you don’t sell your home within the bridging period, you will also typically be charged a higher rate.

How do I know if a bridging loan is right for me?

As everyone’s financial situation is different, it’s important to speak to a professional and do your own research before deciding if a bridging loan is right for you. At Sanford Finance, we’ll work with you to determine the right options for your unique financial situation – finding the right loan options, ensuring you are looking for properties you can afford and walking you from the first steps through to settlement and even refinancing in the future to ensure you always have the right loan for your needs.

What is a family guarantee and how can it help you secure your home?

What is a family guarantee and how can it help you secure your home?

It’s no secret that saving for a home deposit can be difficult. Whether you’re juggling the

cost of renting, further education or even just the rising cost of living, the dream of owning
a home can feel like a long shot – but there is something that could help you secure that
dream sooner.

A family security guarantee is commonly used by home buyers when they aren’t able to
secure a loan on their own.

What is a family security guarantee?

For borrowers who aren’t able to reach a deposit (as required by the lender) on their home
loan, a Family Security Guarantee may be a solution.

This allows a family member to act as a guarantor to secure your deposit, giving you greater
borrowing power. This can reduce your Loan to Value Ratio (LVR) to under 80%, removing
the need to pay Lender’s Mortgage Insurance (LMI) on top of your deposit.

That family member can choose to use equity from their home or cash (for example, savings
or term deposit funds) to use as security for your loan, however, they will not need to give
any funds directly to you or the lender.

What are the benefits of a Family Guarantee/Guarantor?

  • Borrowers can finance up to 100% of the purchase price, plus costs
  • Lender’s Mortgage Insurance and Low Deposit Premiums can be avoided
  • Wider range of loan products to choose from
  • Additional interest rate discounts available
  • You may be able to enter the market sooner than you would be able to otherwise
    What does this kind of loan look like?

Here is a quick example of how a Family Guarantee can work:

Jane is looking to purchase a property valued at $500,000. To do this, she needs to borrow
$450,000 to cover the loan abouts and other costs (not including LMI).

Loan Amount ÷ Property Value = LVR

$450,000 ÷ $500,000 x 100 = 90%

With an LVR of 90%, Jane would need to pay LMI as an added cost, however, if she adds a
Family Security Guarantee of $70,000 as additional security, the LVR on the loan reduces

Loan Amount ÷ (Property Value + Security Guarantee amount) = LVR

$450,000 ÷ ($500,000 + $70,000) x 100 = 79%

With a new LVR of 79%, Jane no longer requires LMI, saving her a significant amount of
money on her property purchase.

The details:

  • The value ($) of the guarantee can be limited to 20% of the purchase price, plus costs
    (including stamp duty, legal fees etc).
  • In most cases there are no servicing requirements from the Guarantor/s (this is not
    an income guarantee)
  • A second mortgage may be available if the guarantor’s current mortgage is with a
    different lender

How long does the guarantee last?

You can remove the guarantee when:

  • You haven’t missed any payments in the last 6 months
  • Your loan is less than 80% of the property value (you can still remove the guarantee
    if you owe more than this, however, you will need to pay LMI to achieve this)
    Most guarantees last from 2-5 years, depending on property prices and your ability to pay
    down your loan.

Want to see if this is suitable for you?

Get in touch with our team today to discuss your options. Send us an email or call us on (02)
9095 6888

Apartments vs Houses: What should you invest in?

Apartments vs Houses: What should you invest in?

You’ve decided you’re ready to invest – but the decision process doesn’t stop there.

Houses, units, apartments, townhouses, new builds, existing builds – where should you put your money?

Purchasing any property is a highly considered process. In previous years, houses were considered the best purchase, with apartments and units only really an option for those on a lower budget.

Today, however, this is a thing of the past as the Australian property market continues to thrive, attracting overseas investors, infrastructure evolution and changing living situations.

So what should you invest in?

Deciding whether an apartment or house is the right purchase for you all depends on your budget, strategic goals and the current market.

With any major financial purchase, it’s important to look beyond your personal preference to the overall environment. You need to set your feelings aside and look at the property purchase as a rational financial transaction to ensure you’re spending your money wisely.

By focusing on economic indicators such as auction clearance rates, interest rates and median purchase prices, you can develop a solid strategic plan.

But you shouldn’t do it alone. Seeking professional assistance from real estate agents, mortgage brokers and financial planners is critical as it allows you to properly evaluate this information and apply it to your goals.

What is the best type of property to invest in?

When considering investment opportunities, it’s important to look at the facts. There are three important indicators that need to be considered before purchasing an apartment or house:

  • Economic Factors – understanding key economic drivers such as cash and interest rates, clearance and vacancy rates, demographics and employment figures will help illustrate how the market is currently performing, as well as give you an idea of what may happen in the future.
  • Supply and Demand – how many apartments are on the market currently compared to the number of houses? Which are leasing faster? Are house prices increasing faster than apartments or vice versa? By understanding these factors, as well as any developments in the area, you are able to determine whether there is an oversupply or undersupply in a particular location.
  • Affordability – understanding the affordability of a property will ensure you are not over or under-capitalising on your purchase. Rental yield is also an important factor to consider for the affordability of prospective tenants.

What are the advantages of investing in an apartment?

  • Generally a cheaper purchase price
  • Often located in highly sought-after inner city or beachside locations
  • Strata maintenance assists in the upkeep and maintenance of your property
  • Higher levels of rent relative to the purchase price provides investors with a better yield
  • When investing in apartments, you’re often able to hold more property over the long term due to lower purchase and maintenance costs

What are the advantages of purchasing a house as an investment property?

  • More privacy for tenants – often attracting higher rental prices
  • More scope for renovations when looking to add value quickly, without the need for signoff from strata or body corporate
  • Ownership of appreciating land
  • Can be more resilient to market changes

What are the disadvantages of purchasing an apartment as an investment property?

  • Restrictions on pet ownership can turn away tenants
  • Upgrades and renovations can be restricted
  • Less privacy for tenants
  • Fewer facilities including pools, backyards and outdoor areas

What are the disadvantages of investing in a home?

  • Higher purchase prices
  • Maintenance of grounds including gardens and pools
  • No strata or body corporate to assist with building maintenance or compliance

What type of property is the best to invest in?

Ultimately, there is no clear winner when deciding between houses or apartments. Instead, the key is to assess each opportunity on a case-by-case basis, determining which is the right purchase for you.

Need help deciding? That’s where we come in. To find out more about whether an apartment or home is the right investment for you, contact our team on (02) 9095 6888 or [email protected]