The First Home Guarantee, a scheme designed to help first-time home buyers, has had a shake-up to its eligibility criteria. This change widens the scope of the scheme and offers more opportunities for those who wish to purchase a home including, friends, housemates, legal guardians, and siblings.
Additionally, the scheme has extended the eligibility period to include individuals who have not owned a home in the last ten years. This allows people who may have previously owned a home but lost it due to unforeseen circumstances to still qualify for the scheme. Australian permanent residents are also able to apply. The purpose of this change is to make the scheme more inclusive and provide opportunities to those who may have been overlooked in the past.
From 1 July 2023, the funding available for three schemes the First Home Guarantee, its regional version, and the Family Home Guarantee will be increased due to the extended eligibility requirements. This will encourage more people to participate in the scheme, thereby enabling them to obtain funding to purchase a home. The scheme, however, will only have a finite amount of funding available, and candidates will need to fulfil specific requirements to be eligible.
Purchasers who the meet scheme’s criteria will have the federal government act as a guarantor on up to 15% of the loan allowing them to buy a home with as low as a 5% deposit and avoid paying lenders’ mortgage insurance.
The Family Home Guarantee will also be expanded with single legal guardians of children, such as aunts, uncles, and grandparents being eligible, previously it was only single parents with at least one dependent child.
From 1 July 2023 to June 30 2025, there will be 50,000 spots per year for qualifying homebuyers, 35,000 spots for the First Home Guarantee Scheme, 10,000 spots for regional, and 5,000 for Family Guarantee. The First Home Guarantee Scheme’s revisions are good news for anyone who intends to buy a home. More people will have access to the scheme to fulfil their homeownership dreams thanks to more diverse eligibility criteria.
Find out more here https://www.nhfic.gov.au/support-buy-home/first-home-guarantee
