On 30th April 2023, Government announced that they will help more Australians into home ownership sooner through a significant expansion of criteria for the Home Guarantee Scheme. This scheme helps home buyers to purchase property with low deposit (2%-5%) without paying LMI (Lender Mortgage Insurance)
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 as the Government continues to address Australia’s housing challenges.
From 1 July this year, friends, siblings, and other family members will be eligible for joint applications under the First Home Guarantee and the Regional First Home Buyer Guarantee. These guarantees had previously been restricted to people that were married or in a de‑facto relationship, in addition to single applicants.
The guarantees will also be expanded to non‑first home buyers who haven’t owned a property in Australia in the last ten years. This will support those who have fallen out of homeownership, often due to financial crisis or relationship breakdown.
Eligibility will also change for the Family Home Guarantee, expanding it from single natural or adoptive parents with dependents to eligible borrowers who are single legal guardians of children such as aunts, uncles and grandparents.
All three guarantees will also become available to eligible borrowers who are Australian Permanent Residents, in addition to Australian citizens.
These changes will build on last year’s increase in the number of places available and the establishment of Government’s new Regional First Home Buyer Guarantee.
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.
This is an exciting announcement from the government and will assist many more Australians who previously had no choice and needed to pay significant amount on LMI (Lenders Mortgage Insurance) to purchase home.
If you would like to discuss further regarding this scheme or any other home loan enquiries please contact our broker Anup.
Anup
0415 900 264
anup@drawequity.com.au
or Click here to fill out the form and we will get in touch.
