Now that the FHOG has increased it will cover most or all of the purchase costs (depending on how much you pay for your first home).
Most people are surprised to learn that they can borrow 100% of the purchase price (subject to valuation) of a residential property. For years their parents and friends have been urging them to save for a deposit, but it’s hard to save for a deposit and pay rent as well. The good news is that genuine no deposit loans are now available Australia wide and in most cases there is no interest rate penalty!. So now it’s much easier to get out of the rent rut and start paying off your own home instead of the landlord’s.
The great advantage of a No Deposit home loan is that you can get into your own home NOW!(taking advantage of the FHOG increase). If the market is moving ahead at 10%p.a, a $300,000 prpoerty will cost you at least $360000 in 2 years time. If it takes you 2 years to save a $20000 deposit you will be behind by $60000, plus two years rent ($25000).