The homeowning dreams of some Australians were boosted this week, with the announcement of new guarantees for single parent buyers and first timers.
In its 2021-22 Budget, the Australian Government announced an extension to the First Home Loan Deposit Scheme (New Homes) and the establishment of a new program called the Family Home Guarantee.
The new program will provide eligible single parents with dependants the opportunity to build a new home or buy an existing one with a deposit of just 2%, subject to their ability to service the home loan.
From 1 July 2021, 10,000 Family Home Guarantees will be made available over four financial years.
The guarantee is available regardless of whether the single parent is a first home buyer or previous owner-occupier. Applicants must be Australian citizens, at least 18 years of age and have an annual taxable income of no more than $125,000.
The FHLDS (New Homes) scheme has also been extended for a second year, with an additional 10,000 places available from 1 July 2021 to 30 June 2022.
Eligible borrowers can apply for the new Family Home Guarantee, the FHLDS and FHLDS (New Homes) through their lender or broker from 1 July 2021.
To find out more about the guarantees, including eligibility criteria, see the National Housing Finance and Investment Corporation (NHFIC) website.