Everything you need to know about the Federal Budgets Home Loan Schemes.
Tuesday night’s Federal Budget saw the expansion of the Home Guarantee Scheme. The Home Guarantee Scheme will allow tens of thousands more aspiring homeowners to purchase a property without having to save a 20% deposit or take out lenders mortgage insurance. The Coalition announced that the scheme will be expanded to 50,000 places available per year for the coming three years.
The scheme will particularly benefit first home buyers, single parents and regional Australians looking to get into the property market.
What does the expanded scheme look like for…
First Home Buyers
- The First Home Loan Deposit Scheme allows first time buyers to get into the market without the standard 20% deposit required by mortgage lenders. For those who qualify, the scheme guarantees up to 15% of a loans value, meaning the buyer can obtain a home loan with a 5% deposit without being hit with lenders mortgage insurance.
- The 2022 budget has expanded the cap from 10,000 to 35,000 a year.
Regional Australians
- An additional 10,000 places will be reserved for regional first home buyers and previous homeowners under the Regional Home Guarantee.
- For those who qualify, the scheme guarantees up to 15% of a loans value, meaning the buyer can obtain a home loan with a 5% deposit.
- This scheme will be available to both Australian citizens and permanent residents as long as they have not owned a property in the previous five years.
Single Parents
- The Family Home Guarantee will allow single parents looking to enter or re-enter the property market with a 2% deposit.
- 5000 places each year will be set aside for single parents.
Who is eligible?
The income caps for all three schemes will remain unchanged from previous years:
- $125,000 for singles
- $200,000 for couples
The property price cap for the ACT has increased from $500,000 to $600,000. A full list of each states price cap can be found here.
Permanent Residents will only be eligible for the Regional Home Guarantee, as the other schemes are limited to Australian Citizens.
Finally, Participants must be buying a home which they will live in live in, the schemes do no apply to investment properties.
We’re here to help!
Get in touch with Dominion Finance today to find out if you are eligible for the scheme and to learn which lenders are participating. Discuss your situation with our mortgage brokers today, and we’ll find you the right home loan for your scenario. To book an appointment call us on 02 6162 2740 or email us at
