How to buy first house with no deposit is every Australian’s dream. In normal circumstances, a deposit means five to 20 twenty percent of your property value. In many cases it is not as easy to acquire this amount as easily as it sounds. Apart from this deposit you need to save for stamp duty, solicitor’s fee, advertisement charges and realtor’s commission. The amount keeps piling up and is mind boggling. Of course a deposit means lower amount of interest and repayment terms. But not all can afford deposits, so what is the way out?
 
There are many financial institutions that offer no deposit house loans. This could save your deposit amount and there is no strain on your household expenses. Though, you need to pay a higher rate of interest to match the deposit. Apart from high interest rates, Lender Mortgage Insurance premium also will be charged, to safeguard the lender’s interest in case of any default. This insurance is very easy to understand, a borrower who pays less than twenty percent deposit or no deposit is a risky customer. Though, the insurance premium could be lesser depending upon the value of the loan and the stamp duty.

First home buyers are eligible for First Home Owners Grant Scheme (FHOG). The grant is available for purchasing residential dwellings. Buying vacant land does not come under this category. In case your spouse has availed of this scheme, you are not eligible for the plan. Only one family member can utilize this facility. The eligibility criterion is that the buyer should not own another other property individually or jointly. The property is not subject to Government tax. The buyer eligible for FHOG is also entitled for First Home Plus Scheme where you can avail exemptions or special consideration on Stamp duties. This depends on the property value and the amount borrowed for the purchase. The First Home Plus Scheme also offers exemption on vacant land where the house is going to be built on. The government has offered grants like First Home Owners Grant and First Home plus Scheme for the benefit of first time home buyers, with the aim to provide housing facilities to all their citizens. This move is a welcome step for helping in realizing the dreams of their citizens.

FHOG is the answer to how to buy first house with no deposit. The grant can be used as deposit by a first home buyer. This grant along with First Home plus Scheme is a boon for home buyers. It is recommended to precisely calculate the cost of the house to be purchased to the last dollar. This could help you get a rough idea on how much mortgage is needed and what are the monthly repayment terms. With the figure you can plan your monthly budget and save some money for the repayments. There is no need to borrow from lenders for the deposit amount or run your family on a shoe string budget here after. You can avail of the facilities offered by the government to build you first home. How to buy first house with no deposit is definitely possible with plans like FHOG and First Home plus Scheme.