As announced in the 2022-2023 budget, the ‘Home Guarantee Scheme’ has been expanded by the Morrison Government to make up to 50,000 places available each year to eligible home buyers. Under the expanded ‘Home Guarantee Scheme’, the Government will make available:
- 35,000 guarantees each year from 1 July 2022 under the ‘First Home Guarantee’ scheme to support eligible first home buyers to purchase a new or existing home with a deposit as low as 5% of the property value.
- 10,000 guarantees each year from 1 October 2022 under a new ‘Regional Home Guarantee’ scheme to support eligible home buyers, including non-first home buyers and permanent residents to purchase or construct a new home in regional areas*.
- 5,000 guarantees each year from 1 July 2022 under the ‘Family Home Guarantee’ scheme to support single parents with children to buy their first home or to re-enter the housing market with a deposit of as low as 2% of the property value.
The ‘Home Guarantee Scheme’ ensures that part of an eligible buyer’s home loan is guaranteed by the Government, allowing Australians to purchase a home sooner with a smaller deposit and without needing to pay lenders mortgage insurance.
It is important that you apply for a place via a well-connected and experienced broker who can help you track down the right lender for you. If you think that the expanded ‘Home Guarantee Scheme’ might be right for you or if you would like to know more, be sure to talk to the team at Crest Mortgages & Finance today to discuss your circumstances.
*Subject to the passage of enabling legislation.