First Home Guarantee for New Zealand Citizen: No LMI Required

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:

• A minimum 5% deposit from genuine savings
• An individual income of up to $125,000 or a combined income of $200,000 for couples (based on the previous year’s Notice of Assessment)
• A property that falls within the price cap for your state (e.g., up to $700,000 in major Queensland towns)
• A current VEVO (Visa Entitlement Verification Online)
• No prior ownership interest in Australian property within the last 10 years

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.

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