The Australian government introduced the Home Guarantee Scheme to help address housing affordability in Australia. It helps first home buyers who are struggling to save for a deposit and pay lenders mortgage insurance. The scheme allows eligible home buyers to purchase a home with as little as a 5% deposit, without having to pay lenders mortgage insurance.
Under the Home Guarantee Scheme, the government acts as a guarantor on up to 15% of a loan for the First Home Guarantee and Regional First Home Guarantee, and up to 18% for the Family Home Guarantee. This means that eligible buyers can purchase a home with as little as a 2% deposit without paying lenders mortgage insurance.
Changes Effective July 1
The scheme has been popular since it was introduced, with many Australians taking advantage of the assistance it provides. However, there were some restrictions on who could apply for the scheme. To address these issues, the government has recently announced changes to the Home Guarantee Scheme. These changes will make it easier for more Australians to access and buy their first home.
First Home Guarantee and Regional First Home Buyer Guarantee
One of the key changes is that the eligibility criteria for the have been expanded to include joint applications from friends, siblings, and other family members. Previously, these schemes were only available to married and single people, as well as those in de facto relationships.
Family Home Guarantee
The government has also expanded the eligibility criteria for the Family Home Guarantee. This guarantee was previously only available to single natural or adoptive parents with dependents. However, the government has now extended eligibility to include single legal guardians of children, such as aunts, uncles, and grandparents.
All Home Guarantee Schemes
The government has made the Home Guarantee Scheme available to permanent residents, as well as Australian citizens. This means that more people will be able to access the scheme.
And the big change? These schemes will also be available to non-first home buyers who have not owned a property in the past 10 years.
The government has said that these changes are being made to reflect the changing makeup of Australian households. Many friends and family members are now teaming up to buy their own homes, and the government wants to ensure that they have access to the same assistance that couples have previously had. This is a positive step towards addressing housing affordability in Australia, which is especially important given the current state of the housing market.
These changes have been welcomed by many Australians who have been struggling to save for a deposit and buy their first home. The scheme has been credited with helping many Australians get into the property market, and these changes will make it easier for more people to do so. However, some experts have expressed concerns that the changes could lead to an increase in property prices. They argue that the increased demand for homes could drive up prices, making it even harder for first home buyers. Despite these concerns, the government has said that it is committed to helping more Australians buy their first home, and it believes that the changes to the Home Guarantee Scheme will help to achieve this goal.
It’s important to note that buying a home is a significant financial commitment and requires careful consideration. That’s where a mortgage broker can come in to provide expert guidance and support.
If you’re considering taking advantage of the Home Guarantee Scheme, we encourage you to reach out to one of our brokers. Our team can help you understand the eligibility requirements and guide you through the application process. With our extensive network of lenders and our commitment to finding the best mortgage options for our clients, we can help you make your dream of home ownership a reality. Contact us today to get started.
