From 1 July 2023, access to the Government’s Home Guarantee Scheme will be expanded to joint applications from “friends, siblings, and other family members” and those who have not owned a home for at least ten years.
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 when they enter the loan has been extended to include permanent residents.
The schemes guarantee part of a first home owner’s home loan, enabling them to purchase a home with as little as 5% deposit without paying Lender’s Mortgage Insurance. Guarantees are capped at 15% of the value of the property. Thirty-five thousand places are available for the First Home Guarantee Scheme each financial year. From 1 October 2022, ten thousand places will be available each financial year until 30 June 2025 for the Regional First Home Buyers Scheme.
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 dependent natural or adopted child. Still, it 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 Lender’s Mortgage Insurance. The guarantee is capped at 15% of the value of the property. Five thousand places are available to the scheme each year to 30 June 2025.
Want to discuss your eligibility for the scheme? Be sure to contact us or book an appointment today.