The Australian federal government recently announced significant changes to the Home Guarantee Scheme, aiming to tackle the pressing issue of housing affordability.
These changes bring expanded eligibility criteria for the First Home Guarantee, Regional First Home Buyer Guarantee, and Family Home Guarantee.
This decision reflects the evolving dynamics of Australian households and aims to provide vital assistance to a broader range of individuals and families in Australia aspiring to own a home.
Expanded Eligibility Criteria for First Home Guarantee and Regional First Home Buyer Guarantee
Starting from July 1 this year, friends, siblings, and other family members will be able to apply for these guarantees jointly.
Eligibility has also been extended to non-first home buyers who have not owned a property in the past decade.
Under these schemes, the federal government acts as a guarantor on up to 15% of a loan, allowing eligible buyers to secure a home with a deposit as low as 5% without having to pay lenders mortgage insurance.
Family Home Guarantee Adaptations
The criteria for the Family Home Guarantee have also undergone revisions beyond being limited to single natural or adoptive parents with dependents.
This change extends the guarantee to single legal guardians of children, including aunts, uncles, and grandparents.
With the federal government acting as a guarantor on up to 18% of a loan, eligible buyers can now purchase a home with a minimal 2% deposit, without the need for lenders mortgage insurance.
Inclusion of Permanent Residents
In addition to Australian citizens, the availability of all three guarantees will be expanded to include permanent residents.
This expansion recognises the contribution and integration of permanent residents into the Australian community, ensuring they have equal opportunities to access the Home Guarantee Scheme.
Guarantee Eligibility and Availability
Under the updated scheme, 35,000 First Home Guarantees are made available each year. Additionally, until June 30, 2025, there will be 10,000 places annually for the Regional First Home Buyer Guarantee and 5,000 places per year for the Family Home Guarantee.
For those interested in determining their eligibility for the scheme, the National Housing Finance and Investment Corporation (NHFIC) website offers a user-friendly eligibility questionnaire. If you’re interested in exploring whether you qualify for one of the guarantees, use the NHFIC eligibility checker here.
We’re here to help
The expanded Home Guarantee Scheme presents exciting new opportunities for aspiring homeowners in Australia. Contact Dominion Finance Mortgage Broker today to learn more about each of the schemes and assess your eligibility.