Access To The Home Guarantee Scheme Expanded
From 1 July 2023, the Government will expand access to the Government’s Home Guarantee Scheme to joint applications from ‘friends, siblings, and other family members’ and to those who have not owned a home for at least 10 years.
First Home Guarantee and Regional First Home Buyers Schemes
The Government will expand the eligibility criteria for access to the:
- First Home Guarantee Scheme.
- Regional First Home Buyers Scheme.
From 1 July 2023, the schemes will no longer limit access to individuals and couples who are married or in de facto relationships. Eligible friends, siblings, and other family members can now apply jointly. The government has also extended eligibility to include permanent residents, not just Australian citizens, at the time of entering the loan.
The schemes guarantee part of a first home owner’s home loan. It enables them to purchase a home with as little as 5% deposit without paying Lenders Mortgage Insurance. The Government has capped the Guarantee at 15% of the value of the property.
Thirty five thousand places are available for the First Home Guarantee Scheme each financial year. From 1 October 2022, there will be ten thousand places available. This will occur each financial year until 30 June 2025 for the Regional First Home Buyers Scheme.
Family Home Guarantee
The Government has extended the eligiblity to the Family Home Guarantee. From 1 July 2025, the scheme won’t be restricted to single parents with at least one dependant natural or adopted child. It will also be available to:
- Borrowers who are single legal guardians of dependent children such as aunts, uncles and grandparents.
The Family Home Guarantee guarantees the home loan of an eligible single parent with at least one dependent child. This enables them to purchase a home with as little as 2% deposit without paying Lenders Mortgage Insurance. The Government has capped the guarantee at 15% of the value of the property. Five thousand places are available to the scheme each year to 30 June 2025.
This is general advice only and has not been prepared with your situation and needs in mind. For individual and personalised advice, we highly recommend that you seek out proper professional advice from your financial adviser.
