Just announced! Big news for anyone who is interested in buying a house using the Home Guarantee Scheme. Eligibility criteria for all elements of the scheme — including the First Home Guarantee, the Regional First Home Buyer Guarantee, and the Family Home Guarantee — will be expanded from July 1st 2023 as the government continues to address Australia’s housing challenges.
WHAT IS THE FIRST HOME GUARANTEE?
The First Home Guarantee allows first-home buyers to qualify for a home loan with a deposit as low as 5% without the need to pay LMI (Lender Mortgage Insurance) fees. The Government effectively acts as a guarantor for the remaining 15% deposit.
HOW HAS THE SCHEME BEEN EXPANDED?
| BEFORE JULY 1ST 2023 | FROM JULY 1ST 2023 |
|---|---|
| Only couples | Friends/Family can buy together |
| Australian citizens only | Permanent residents too |
| Parents of children only | Legal guardians too |
| First home buyers | Will allow those who have “fallen out of homeownership”. For example, those who may have experienced financial crisis or relationship breakdown. |
In total, 35,000 places are available per year across the First Home Guarantee, 10,000 places per year to 30 June 2025 under the Regional First Home Buyer Guarantee, and 5,000 places per year to 30 June 2025 under the Family Home Guarantee.
“Possibly owing to the known strain on families in 2020 during lockdowns, 2021 divorce rates saw an increase to the largest number of divorces in the last 20 years” damiengreer.com.au. With this in mind, the expansion of the scheme to include people who have experienced financial crisis or relationship breakdown will be welcomed by many.
WHEN SHOULD I APPLY?
There are only a limited number of spaces each year so it is important to ensure your application is submitted swiftly to have the best chance of being “first-in-best-dressed”. Eligibility criteria applies. To find out if you are eligible GET IN TOUCH with Bernadine and the Style Finance Team today!
We are ready to help you. Contact us or ph.1300 005 409 to get started. Get in quick to reserve your spot!