Springfield
R&H
You are viewing an article that is not currently active

How has the Home Guarantee Scheme changed?

May 7, 2023

From 1 July this year, the Federal Government will help more Australians own a home sooner by significantly expanding the Home Guarantee Scheme (HSG) criteria. 

The Scheme is administered by the National Housing Finance and Investment Corporation (NHFIC) on behalf of the Australian Government and includes: 

  • The First Home Guarantee (FHBG) – to support eligible first home buyers to buy their first home sooner, with a deposit of 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 of as little as 2%. Five thousand places are available each financial year to 30 June 2025.

What is changing? 

From 1 July, 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 married people 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. These expanded criteria will support those who have fallen out of homeownership, often due to financial crisis or relationship breakdown. 

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.

While the three guarantees - the First Home Guarantee, the Regional First Home Buyer Guarantee, and the Family Home Guarantee - are currently limited to Australian citizens, all three guarantees will also become available to eligible borrowers who are Australian Permanent Residents from 1 July 2023.

For more information about the Home Guarantee Scheme and the changes from 1 July 2023, visit www.nhfic.gov.au/support-buy-home