As of July 1, the federal government has made another 40,000 places available in its Home Guarantee Scheme (HGS) for first home buyers and single parents.
Under the HGS, eligible buyers can purchase a residential property with a very small deposit, without having to pay lender’s mortgage insurance.
Income caps and property price caps apply. Also, you have to purchase your property through a participating lender (which I can help you with), and meet that lender’s standard borrowing criteria.
The HGS consists of two separate schemes – the First Home Guarantee and Family Home Guarantee.
First Home Guarantee
- Places available this financial year = 35,000
- Buyer type = first home buyers (owner-occupiers only)
- Maximum income = $125,000 for singles, $200,000 for couples
- Property type = new and established homes
- Minimum deposit = 5%
- Maximum property value = $400,000 to $900,000 (depending on where you live)
Family Home Guarantee
- Places available this financial year = 5,000
- Buyer type = single parents who don’t own a home and have at least one dependent child
- Maximum income = $125,000
- Property type = new and established homes
- Minimum deposit = 2%
- Maximum property value = $400,000 to $900,000 (depending on where you live)
Regional First Home Buyer Support Scheme
It’s possible the federal government will support an additional 10,000 buyers this financial year. That’s because Anthony Albanese promised during the recent election campaign to unveil a Regional First Home Buyer Support Scheme in January 2023 – although it hasn’t been officially confirmed yet.
According to Labor’s announcement, here’s how the scheme would work:
- Places available this financial year = 10,000
- Buyer type = regional first home buyers (owner-occupiers only)
- Maximum income = $125,000 for singles, $200,000 for couples
- Property type = new and established homes
- Minimum deposit = 5%
- Maximum property value = expected to be the same as the HGS price caps
I can help you buy a home through the Home Guarantee Scheme, whether you’re a first home buyer or single parent. Different lenders have varying requirements including for genuine savings, and I can talk you through whether you could be eligible. Contact me to discuss how to take advantage of this federal government program.