Securing Your Plumbing Dreams: 

Owning your own plumbing business is a fantastic achievement, offering freedom and the potential for great income. But that dream home you’ve been eyeing might seem out of reach due to the hurdle of saving a deposit. Fear not, fellow tradies! This article tackles your deposit concerns:

  • Minimum Deposit Requirements for Self-Employed Plumbers
  • Government Grants and Schemes to Assist with Deposits

Deposit Hurdles and How to Jump Over Them

Deposit requirements in Australia typically range from 5% to 20% of the property value, depending on the lender and your loan type. The good news is, some lenders understand the variable income nature of self-employment and might offer options with a lower minimum deposit. However, be prepared to:

  • Demonstrate Strong Financial Management: Having a clean tax record and solid financial statements showcasing consistent income over a reasonable period will strengthen your application.
  • Consider a Guarantor Loan: Enlisting a close relative with strong financial standing as a guarantor can help secure a lower deposit loan.

Government Help for Aspiring Tradie Homeowners

The Australian government offers a few schemes to help bridge the deposit gap:

  • First Home Loan Deposit Scheme (FHLDS): This scheme allows eligible first-time home buyers to purchase a property with a deposit as low as 5%. Check with the National Housing Finance and Investment Corporation (NHFIC): for eligibility criteria and participating lenders.
  • State-Based First Home Buyer Grants: Several states offer additional first home buyer grants that can be used towards your deposit. Explore the websites of your state revenue office for details on these grants.

Beyond the Deposit: Planning for Success

Remember, the deposit is just one piece of the homeownership puzzle. Factor in ongoing costs like mortgage repayments, property maintenance, and potential rates rises. Here are some additional tips:

  • Talk to a Mortgage Broker: A broker can assess your financial situation and recommend lenders with favourable terms for self-employed borrowers.
  • Save Diligently: Every bit counts! Create a savings plan and explore high-interest savings accounts to maximize your deposit growth.

Building Your Plumbing and Property Dreams

With careful planning, strong financial management, and a little government assistance, securing that deposit and owning your dream home becomes a real possibility. So keep up the good work, and remember, a solid financial foundation is essential for your long-term success as a self-employed plumber!