The federal government has announced it is expanding the criteria of the Home Guarantee Scheme in an attempt to address the housing affordability crisis.
The changes will see eligibility criteria expanded as of July 1 2023, for the First Home Guarantee, the Regional First Home Buyer Guarantee, and the Family Home Guarantee.
Every year, 35,000 First Home Guarantees places are made available.
In addition, up until June 30, 2025, there will be 10,000 places available per year under the Regional First Home Buyer Guarantee and 5,000 places per year under the Family Home Guarantee.
While previously the First Home Guarantee and Regional First Home Guarantee schemes were restricted to married and single people, as well as those in defacto relationships, the government is relaxing those restrictions.
From July 1 this year, friends, siblings and other family members will be able to jointly apply for the First Home Guarantee and Regional First Home Guarantee.
These schemes will also be available to non-first home buyers who have not owned a property in the past 10 years.
For both the First Home Guarantee and Regional First Home Guarantee schemes, the federal government acts as guarantor on up to 15 per cent of a loan. This enables eligible home buyers to purchase a home with as little as a 5 per cent deposit without paying lenders mortgage insurance.
The criteria for Family Home Guarantee applicants will also be expanded beyond just single natural or adoptive parents with dependents.
This change means the guarantee will become available to eligible borrowers who are single legal guardians of children, such as aunts, uncles and grandparents.
Under the Family Home Guarantee, the federal government acts as guarantor on up to 18 per cent of a loan. This enables eligible home buyers to purchase a home with as little as a 2 per cent deposit without paying lenders mortgage insurance.
The availability of all three guarantees will also be expanded to include permanent residents in addition to Australian citizens.
For the full story – visit https://ab.co/44le2ld
