As previously announced, from 1 July 2023, access to the Government’s Home Guarantee Scheme will be expanded to joint applications from “friends, siblings, and other family members” and to those who have not owned a home for at least 10 years.
Specifics & breakdown
First Home Guarantee
Guarantees part of a first homeowner’s home loan enabling them to purchase a home with as little as 5% deposit without paying Lenders Mortgage Insurance. Guarantee capped at 15% of the value of the property. 35,000 places are available to the scheme per year.
Current eligibility
- Applying as an individual or couple (married / de facto)
- First home buyers who have not previously owned, or had an interest in, a property in Australia.
- An Australian citizen(s) at the time they enter into the loan
- At least 18 years of age
- Earning up to $125,000 for individuals or $200,000 for couples, as shown on the Notice of Assessment (issued by the Australian Taxation Office)
- Intending to be owner-occupiers of the purchased property
Change from July 1, 2023
- Friends, siblings, and other family members will be eligible for joint applications not just an individual or couple (married de facto)
- First home buyers and non‑first home buyers who haven’t owned a property in Australia in the last ten years
- Australian citizens and permanent residents at the time they enter the loan
- All other criteria remain the same
Regional First Home Buyer Guarantee
An extension of the First Home Guarantee applicable to regional areas only 10,000 places are available to the scheme each year to 30 June 2025.
Current eligibility
- As above for the First Home Guarantee plus the borrower must have lived in the regional area (or adjacent) they are purchasing in for the preceding 12-month period to the date they execute the home loan agreement.
Changes from July 1, 2023
- As above for the First Home Guarantee plus the regional area eligibility requirement.
Family Home Guarantee
Guarantees the home loan of an eligible single parent with at least one dependent child enabling them to purchase a home with as little as 2% deposit without paying Lenders Mortgage Insurance. Guarantee capped at 15% of the value of the property. 5,000 places are available to the scheme each year to 30 June 2025.
Current eligibility
- Applying as an individual
- A single parent with at least one dependent child (natural or adopted)
- An Australian citizen at the time they enter into the loan
- At least 18 years of age
- Be earning no more than $125,000 per year
- Intending to be owner-occupier of the purchased property
- Not currently a property owner
Changes from July 1, 2023
- A single parent with at least one dependent child including legal guardians of children such as aunts, uncles and grandparents
- Australian citizens and permanent residents at the time they enter into the loan
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