From 1 July, 40,000 new places under the Federal Government’s Home Guarantee Scheme (HGS) will become available to help Australians buy their own homes. 

The Home Guarantee Scheme comprises the First Home Guarantee (FHBG), previously known as the First Home Loan Deposit Scheme, and the Family Home Guarantee (FHG). The FHG is for single parents. 

The number of places available through the First Home Guarantee increases from 10,000 to 35,000 per financial year. At the same time, the Family Home Guarantee will have an annual allocation of 5,000 places from 1 July 2022 until 30 June 2025. 

The Home Guarantee Scheme, administered by the National Housing Finance and Investment Corporation (NHFIC), has helped more than 61,000 Australians purchase or build homes. 

NHFIC anticipates making 50,000 new Scheme places available to eligible homebuyers in the year ahead, including 10,000 places in the Australian Government’s announced Regional First Home Buyer Support Scheme. 

Under the First Home Guarantee, an eligible first homebuyer can purchase a property with a deposit of as little as five per cent. In comparison, through the Family Home Guarantee, a single parent with dependents can buy a home with a deposit of as little as two per cent. 

To provide homebuyers with greater access to the property market, the property price caps associated with the Scheme have increased for both cities and regions. From 1 July, the panel of lenders offering the Scheme expanded to 32 lenders offering homebuyers broader choice. 

Raine & Horne’s financial services division, Our Broker has welcomed the Australian Government’s increase of Home Guarantee Scheme places. Craig Betalli, Senior Broker, Our Broker, said that the expansion of the Scheme provides more opportunities for first home buyers to get into the market. “These schemes help reduce the amount of deposit that first-timers need to save while it also removes the need to pay lenders mortgage insurance,” he said. 

“Add the incentives such as the stamp duty breaks for first timers offered by the states, and the HGS means more younger Australians can genuinely get into the market with deposits as low as 5%.” 

Craig continued, “We expect more Australians to fast forward their home-buying plans under the expanded Scheme. These incentives will also support entry-level real estate markets.”

If you’re a first home buyer and want to know more about the Scheme and the price caps in your state and territory, contact Our Broker on 1800 913 677.