First home buyers will continue to to be eligible for assistance from the Federal Government, with the announcement that the Home Guarantee Scheme will be continued and expanded.
Under the scheme, the deposit required for qualified first home buyers is 5 per cent, with the government guaranteeing the other 15 per cent, allowing first home buyers to avoid costly Lender’s Mortage Insurance (LMI).
Ahead of Tuesday’s Federal Budget, the Federal Government announced it will extend and expand the scheme that was slated to end in June, doubling the available places to 50,000 including 35,000 for first home buyers in major cities, 10,000 for those wanting to buy or build new homes in regional areas, and 5000 places for single parents.
The scheme applies to new or existing homes worth up to $800,000 in cities and $500,000 in regional areas. To qualify for the initiative, singles can earn up to $125,000 while couples can earn up to a combined $200,000.
There will also be a new scheme established called the Regional Home Guarantee (RHG) that aims to encourage more construction outside of capital cities.
The guarantee will be available to first home buyers, people who have not owned a property in the past five years, and permanent residents, in a bid to entice people to the regions.
To access the regional scheme, applicants must either build or purchase a newly built home and there will be 10,000 places per year available from 1 October 2022.
Further details of the government schemes will be outlined in Tuesday’s budget and Treasurer Josh Frydenberg said the programs would help home buyers who are struggling with surging property prices.
“Since January 2020, the government’s Home Guarantee Scheme has helped almost 60,000 home buyers purchase their first home,” Mr Frydenberg said.
“It’s why, in tomorrow night’s budget, we’re supporting even more aspiring home owners to get into the market.”
