What you need to know about First Home Buyer Scheme Changes

In an attempt to address housing affordability for first time buyers, the federal government has expanded the eligibility for the First Home Guarantee, the Regional First Home Buyer Guarantee, and the Family Home Guarantee schemes.

While previously the First Home Guarantee and Regional First Home Guarantee schemes were restricted to married and single people, as well as those in defacto relationships, from July 1 this year, friends, siblings and other family members will be able to jointly apply for these schemes, which will also be available to non-first home buyers who have not owned a property in the past 10 years.

For both the First Home Guarantee and Regional First Home Guarantee schemes, the Government acts as guarantor on up to 15 per cent of a loan. This enables eligible home buyers to purchase a home with as little as a 5 per cent deposit without paying lenders’ mortgage insurance (LMI).

The criteria for Family Home Guarantee applicants will also be expanded beyond just single natural or adoptive parents with dependents. It means the guarantee is available to eligible borrowers who are single legal guardians of children, such as aunts, uncles and grandparents.

Under the Family Home Guarantee, the Government is guarantor on up to 18 per cent of a loan, also enabling eligible home buyers to purchase a home with as little as a 2 per cent deposit without paying LMI. The availability of all three guarantees will also be expanded to include permanent residents in addition to Australian citizens.

Get in touch with us today if you are interested and want to find out more. As your mortgage broker, we can check your eligibility and assist with the application process.