More Australians will soon be able to buy their own home, with the release this month of another 40,000 new places under the Federal Government’s Home Guarantee Scheme.
Under the First Home Guarantee, an eligible first homebuyer can purchase a property with a deposit of as little as five per cent, while through the Family Home Guarantee a single parent with dependents can purchase a home with a deposit of as little as 2%.
On 1 July 2022, the Scheme was expanded to include:
– 35,000 places each financial year under the First Home Guarantee; and
– 5,000 places each financial year for the Family Home Guarantee.
Updated property price caps will also apply from that date, reflecting recent increases in property prices and to make more properties available for purchase using the Scheme.
Further information on the scheme, including eligibility criteria and the full list of participating lenders, is available from the National Housing Finance and Investment Corporation website.
As promised before the recent election, the Federal Government will also implement targeted support to Australians living in regional areas though a new Regional First Home Buyer Support Scheme, as part of the Home Guarantee Scheme. Other policies the government plans include:
– The $10 billion Housing Australia Future Fund which will build 30,000 social and affordable housing properties in its first five years;
– Help to Buy, a new program to make it cheaper and easier for Australians to own their own home;
– Establishing a National Housing Supply and Affordability Council; and
– Developing a new National Housing and Homelessness Plan.
The release has been welcomed by industry groups. Kristin Brookfield, Chief Executive, Industry Policy with the Housing Industry Association (HIA) noted that saving for a deposit is the largest obstacle to achieving home ownership.
“HIA has always maintained that owning your own home is the best form of financial and personal security a person can have”, she said, adding that to date the scheme has helped more than 61,000 Australians get into a home of their own.
“This allocation takes the scheme from its original pilot phase to a well-accepted part of the homebuying landscape in Australia. Since its launch it has been clear that a real problem is being addressed and most importantly that thousands of Australia’s have been assisted to buy their first home.”
