Home Guarantee Scheme expanded
From 1 July this year, more Australians looking to buy their first home will benefit from the expanded eligibility criteria for all elements of the Home Guarantee Scheme.
What is the Home Guarantee Scheme (HGS)?
The Home Guarantee Scheme (HGS) is an Australian Government initiative to support eligible home buyers to purchase a home sooner. The Scheme is administered by the National Housing Finance and Investment Corporation (NHFIC) on behalf of the Australian Government.
The HGS includes:
- The First Home Guarantee (FHBG) – to support eligible first home buyers to buy their first home sooner, with a deposit as little as 5%. 35,000 places are available each financial year
- The Regional First Home Buyer Guarantee (RFHBG) – to support eligible regional first home buyers to buy a home in a regional area. From 1 October 2022, 10,000 places are available each financial year to 30 June 2025
- The Family Home Guarantee (FHG) – to support eligible single parents with at least one dependent child to buy a home, with a deposit as little as 2%. 5,000 places are available each financial year to 30 June 2025.
More details about the Home Guarantee Scheme can be found here. Terms and conditions do apply to these loans, so ask a financial specialist what they will mean for you.
Changes to the criteria 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.
Furthermore, all three guarantees will also become available to eligible borrowers who are Australian Permanent Residents, in addition to Australian citizens.
Pointing out that households have changed, the housing minister, Julie Collins, said the government was ‘moving to meet the times’.
“We know friends and family members are already teaming up to secure their own place to call home,” she said. “Our actions will allow them to access vital assistance, just as couples have been able to previously.”
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.
I am eligible?
The Federal Government’s National Housing Finance and Investment Corporation (NHFIC) website features a short questionnaire that can help you see if you are eligible for one of the schemes. Access the eligibility checker here.
With potentially more new buyers looking for homes as of July, now might be the time to consider selling.
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