The Australian government has recently announced a number of changes to the eligibility criteria of the Home Guarantee Scheme.
Starting July 1st 2023, the Home Guarantee Scheme is set to expand, providing more opportunities for homebuyers to access government-backed loans.
These changes aim to make the scheme more accessible to a wider range of people, helping to address the challenges facing the housing market in Australia.
Under the expanded eligibility criteria, more individuals and families will be able to participate in the different guarantee schemes offered by the Home Guarantee Scheme, including the First Home Guarantee, the Regional First Home Buyer Guarantee, and the Family Home Guarantee.
Some of the main changes include the expansion of the scheme to incorporate permanent residents, broadened eligibility criteria for joint applications, and an expansion to allow more single guardians to use the Family Guarantee.
Additionally, individuals who have previously owned properties will now be able to join the scheme.
Overall, these changes to the Home Guarantee Scheme represent a positive step towards increasing access to affordable housing for more Australians. With the government’s continued efforts to support the housing market, it is hoped that more individuals and families will be able to realize their dream of owning a home.
Starting from July 1, 2023, the Home Guarantee Scheme will become more accessible to eligible borrowers who are Australian permanent residents.
This represents a significant expansion of the scheme, which was previously limited to Australian citizens.
Under the expansion, the three guarantees offered by the Home Guarantee Scheme – the First Home Guarantee, the Regional First Home Buyer Guarantee, and the Family Home Guarantee – will now be available to Australian permanent residents who meet the eligibility criteria.
This change to the eligibility criteria is a positive step towards making affordable housing more accessible to a wider range of individuals and families.
With the Home Guarantee Scheme expanding to include more people, it is hoped that more Australians will be able to achieve their dream of owning a home.
As of July 1, 2023, the eligibility criteria for the First Home Guarantee and the Regional First Home Buyer Guarantee will be expanded to include friends, siblings, and other family members as joint applicants.
Previously, only couples who were married or in a de facto relationship, as well as single applicants, were eligible for the guarantees offered under the shared equity schemes.
These schemes enable eligible first home buyers to enter the property market with a minimum deposit of 5 per cent, without having to pay lenders mortgage insurance.
Instead, the government guarantees the remaining amount of the deposit (up to 15 per cent).
With the expanded criteria, friends and family members who are not in a relationship will also be able to apply for these guarantees together.
This is a positive development for those who are looking to enter the property market and may not have previously been eligible for the shared equity schemes.
It is hoped that this change will enable more people to achieve their dream of owning a home.
Need help navigate the Home Guarantee Scheme changes and find the right mortgage solution for your needs?
The Australian government has also announced an expansion to the Family Home Guarantee eligibility criteria. Currently, only single natural or adoptive parents with at least one dependent child are eligible for the scheme.
From 1 July 2023, the criteria will be broadened to include eligible borrowers who are single legal guardians, such as aunts, uncles, and grandparents.
This will allow more people to access the scheme, which enables eligible borrowers to purchase a home with as little as 2 per cent deposit without paying lenders mortgage insurance.
The government guarantees a maximum amount of 18 per cent of the property value as assessed by the participating lender.
Starting from 1 July 2023, the Home Guarantee Scheme will also be available to previous property owners who haven’t owned a property in Australia in the last ten years.
The government’s aim is to support those who have fallen out of home ownership due to financial crisis or relationship breakdown.
However, the eligibility is limited to 10 years to ensure the scheme is still primarily focused on first home buyers.
Minister for Housing, Minister for Homelessness, and Minister for Small Business, Julie Collins MP, emphasized that the government is updating the scheme to “meet the times” and that these changes will allow friends and family members to access vital assistance.
In addition, the expansion of the Family Home Guarantee’s eligibility criteria to allow more legal guardians access was deemed a “sensible change” that will help ensure more families have a safe and secure place to call home.
Last year, the government increased the number of places available in the scheme and introduced the Regional First Home Buyer Guarantee.
In total, 35,000 places are available per year across the First Home Guarantee, 10,000 places per year until 30 June 2025 under the Regional First Home Buyer Guarantee, and 5,000 places per year until 30 June 2025 under the Family Home Guarantee.
If you are interested in finding out if you are eligible for any of the Home Guarantee Schemes, you can use the eligibility checker provided by the federal government’s National Housing Finance and Investment Corporation (NHFIC).
When buying a property in Australia, it is important to consider the cost of any necessary renovations to cover any unexpected expenses.