Access to Home Guarantee Scheme expanded

From 1 July 2023, access to the Government’s Home Guarantee Scheme will be expanded in an attempt to address the housing affordability crisis.

In a statement released on 30 April 2023, Minister for Housing Julie Collins said households have changed, and the Government is moving to meet the times.

“We know friends and family members are already teaming up to secure their own place to call home,” Minister Collins said.

“Our actions will allow them to access vital assistance, just as couples have been able to previously.”

Eligibility criteria will be expanded for the

• First Home Guarantee,
• Regional First Home Buyer Guarantee, and
• Family Home Guarantee.

The changes also mean permanent residents will be able to access the schemes.

 

First Home Guarantee and Regional First Home Guarantee changes

The eligibility criteria for access to the First Home Guarantee Scheme and Regional First Home Buyers Scheme will be expanded. From 1 July 2023, the schemes will no longer be limited to individuals and couples who are married or in de facto relationships, but will also include eligible friends, siblings, and other family members for joint applications.

In addition, the requirement for the applicants to be Australian citizens at the time they enter the loan has been extended to include permanent residents.

These schemes will also be available to non-first home buyers who have not owned a property in the past 10 years. Minister Collins stated that this will be beneficial to people who have fallen out of home ownership due to financial issues or relationship breakdowns.

The schemes guarantee part of a first homeowner’s home loan enabling them to purchase a home with as little as 5% deposit without paying Lenders Mortgage Insurance. Guarantees are capped at 15% of the value of the property.

 

Family Home Guarantee changes

Eligibility to the Family Home Guarantee will also be extended. From 1 July 2025, the scheme will no longer be restricted to single parents with at least one dependant natural or adopted child, but 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 enabling them to purchase a home with as little as 2% deposit without paying Lenders Mortgage Insurance. The guarantee is capped at 15% of the value of the property.

 

How many of guarantees are available?

Every year, 35,000 First Home Guarantees places are made available.

In addition, there are 10,000 places available per year under the Regional First Home Buyer Guarantee and 5,000 places per year under the Family Home Guarantee.

 

Am I eligible?

The National Housing Finance and Investment Corporation (NHFIC) website has a short questionnaire that can help you determine if you are eligible for one of the schemes. You can access the eligibility checker here.

 

 

How can we help?

Use our calculators to help plan your savings goals, work out your borrowing power or calculate the repayments on a home loan.

You can find out more about working with Marsh & Partners here. As your Absolute.Account.Ability partner we’re on a mission to make your business life better. We’ll help you set goals for your business, devise an Action Plan to make them happen and meet with you regularly to ensure you stay on track.