Changes to the First Home Owners Guarantee
The Australian government is set to expand its first home guarantee scheme, along with its regional and family home equivalents, to make homeownership more accessible to a wider range of Australians. Effective July 1st, the expansion will include changes to the eligibility criteria, allowing more individuals to benefit from these housing schemes.
One of the key changes is the redefinition of a "couple" under the scheme. Previously limited to married or de facto relationships, the new definition will include "any two eligible individuals". This update opens the doors for siblings, parent and child duos, and even friends to pool their resources and purchase a home together. By recognising the changing dynamics of households and relationships, the government aims to provide opportunities for various living arrangements to enter the property market.
Previous Home Owners
In addition to expanding the definition of a "couple," the revised criteria will also allow people who have previously owned a home to be eligible for the schemes, provided they have not owned one within the past 10 years. This adjustment aims to assist individuals who may have faced financial difficulties in the past but are now ready to re-enter the housing market.
The first home guarantee scheme and its regional and family equivalents operate by having the federal government act as a guarantor, enabling individuals to purchase a house with a deposit as low as 5% and avoid the cost of lender's mortgage insurance. Another significant change is the extension of eligibility to Australian permanent residents, not just citizens, further broadening the scope of individuals who can benefit from these schemes.
Evolving First Home Buyers
Housing Minister Julie Collins highlighted that the government is adapting to the evolving needs and preferences of Australians, recognising that friends and family members often join forces to achieve their homeownership goals. By extending the support available to such groups, the government aims to provide vital assistance and level the playing field for all aspiring homeowners.
Each year, a total of 35,000 first homebuyer spots are made available, with 10,000 allocated to the regional first homebuyer guarantee and 5,000 designated for the family home guarantee. These schemes not only support individuals in their quest for homeownership but also serve as a means to stimulate the housing market and boost economic growth.
The expansion of the first home guarantee scheme to include siblings, friends, and other non-traditional "couples" signifies the Australian government's commitment to making homeownership accessible to a diverse range of individuals. These changes aim to foster social equity and provide opportunities for various living arrangements to enter the property market, ultimately shaping a more inclusive and vibrant housing landscape in Australia.
For more information on this scheme, participating lenders and eligibility, refer to this page.
The team at MIX would love to hear from you if you are thinking about entering the real estate market, we would love to help.
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