Australian Army Home Loan – Can I get a home loan with no savings using HPAS and FHOG as my deposit?

Who is this item for?

This article is for members of the Australian Army looking to purchase their first home to live in.

Can Australian Army Service Members Get a Home Loan Without Genuine Savings?

Yes, by taking advantage of the First Homeowners Grant (FHOG) and the Homeownership Assistance Plan (HPAS).

How much can I buy using FHOG and HPAS as my deposit?

In NSW and QLD, first-time home buyers do not pay stamp duty on purchases up to $500,000. Since no stamp duty is due, using only the $7,000 FHOG and $16,949 HPAS, the maximum purchase price without using any of your own funds would be $340,000. The HPAS and FHOG is enough at this purchase price to pay the 5% deposit, legal and purchase costs. Of course, if you have some savings or access to a gift, the purchase price could be higher as long as your income is enough to pay the rebates.

What is the criteria for getting approved for an Australian Army Home Loan with no genuine savings?

1) Minimum 1 year employment with the Australian Army,

2) Clean credit history: absolutely no defaults or bankruptcies,

3) Positive asset position. The positive asset position refers to having more assets than liabilities. Assets for this test exclude retirement and home contents.

4) Sufficient income taking into account existing liabilities to meet repayments if interest rates were to increase by 1.5%

5) Perfect payment history in the last 6 months on all liabilities, including credit cards and personal loans.

Is the interest rate higher?

No, the interest rate is standard: you are not charged more because you have no genuine savings.