First Home Guarantee Expansion
The First Home Guarantee is part of the Home Guarantee Scheme, an Australian Government initiative to support eligible first home buyers purchase a home sooner. It is administered by the National Housing Finance and Investment Corporation on behalf of the Australian Government.
Under the First Home Guarantee, part of an eligible first home buyer’s home loan from a Participating Lender is guaranteed by National Housing Finance and Investment Corporation. This enables an eligible home buyer to purchase a home with as little as 5% deposit, and without the need to pay Lenders Mortgage Insurance.
Any guarantee of a home loan is for up to a maximum amount of 15% of the value of the property, as assessed by the Participating Lender.
Initially 35,000 First Home Guarantee places were offered to eligible first home buyers from the 1st of July 2022 to the 30 June 2023.
Now, from the 1st of July 2023 to the 30th of June 2024, 50,000 Australians could be eligible for government funding under a proposed extension and expansion of the First Home Guarantee, the Regional First Home Buyer Guarantee, and the Family Home Guarantee.
The proposed expansions of these schemes are as follows:
- Single parents and permanent residents will eligible to access the scheme
- The definition of a “couple” will be broadened from “married or de facto” to include “any two eligible individuals”
- Single legal guardians of children will also be recognised and potentially eligible
- People who have not owned a home in ten years will also now be eligible to apply
Government Links:
https://www.nhfic.gov.au/support-buy-home/first-home-guarantee
https://www.nhfic.gov.au/support-buy-home/regional-first-home-buyer-guarantee
https://www.nhfic.gov.au/support-buy-home/family-home-guarantee
News Links:
Nine News https://www.youtube.com/watch?v=Z-z-LYxWEU8