Don’t have enough deposit saved and need some help to buy a home? If you’re a single parent or first home buyer – check – because you might be eligible for the Home Guarantee Scheme. As of 1 July 2022, the federal government has added 40,000 new places to the Home Guarantee Scheme. In this article we provide some helpful information about what is on offer.

From 1 July 2022, the Home Guarantee Scheme will provide 35,000 places to support first home buyers to purchase a home with as little as a five per cent deposit and 5,000 places to assist single parents with dependents to purchase a home with as little as a two per cent deposit.

The Home Guarantee Scheme, (formerly known as the First Home Loan Deposit Scheme) is run by the National Housing Finance and Investment Corporation (NHFIC), its aim is to shorten the time first home buyers have to save a deposit to buy a home.

The scheme gives first home buyers the opportunity to buy a home without having to pay Lenders Mortgage Insurance because their loan is guaranteed by the government.

From 1 July, 2022 the Home Guarantee Scheme has been expanded to include:

  • 35,000 places each financial year to support first home buyers to purchase a home with a deposit of as little as 5% (the First Home Guarantee); and
  • 5,000 places each financial year to support single parents with dependents to purchase a home with a deposit of as little as 2% (the Family Home Guarantee).

What properties are eligible?

Under the scheme, a property must be a ‘residential property’ to be considered eligible. Eligible residential properties include:

  • an existing house, townhouse or apartment 
  • a house and land package 
  • land and a separate contract to build a home 
  • an off-the-plan apartment or townhouse.

How much can a property cost?

The new price caps across states will now apply during the 2022-23 financial year.

Click here to see the price cap for your postcode area.

Income and eligibility

The scheme is income tested so your household income must be less than $125,000 for individuals and $200,000 for couples.

This tool can help home buyers determine eligibility for the First Home Guarantee or Family Home Guarantee.

The property ownership test for the different Guarantees.

First Home Guarantee:

You have NOT ever held:

  • a freehold interest in real property in Australia (this includes owning land only)
  • an interest in a lease of land in Australia with a term of 50 years (or more), or
  • a company title interest in land in Australia.

These tests apply for property interests in all States and Territories of Australia, regardless of whether the property was residential or commercial property, for investment or owner-occupied purposes and whether or not it was ever lived in.

They also apply to you whether or not any of the interests listed above have been held by you on your own or together with someone else – for example, where you held an interest in property with a former spouse or de facto partner.

Family Home Guarantee:

At the time of Home Loan Date you do NOT currently hold:

  • a freehold interest in real property in Australia (this includes owning land only),
  • an interest in a lease of land in Australia with a term of 50 years (or more), or
  • a company title interest in land in Australia.

These tests apply for property interests in all States and Territories of Australia, regardless of whether the property was residential or commercial property, for investment or owner-occupied purposes and whether or not it was ever lived in.

So far the scheme helped more than 61,000 Australians purchase, or build a home.

If you have questions or need assistance with applying for the scheme and securing finance for your purchase get in contact with us.

You can call us on 1300 888 299, contact one of our brokers who are all listed on this page or you can send us an email and tell us a little about yourself and what you need help with. 

General Advice Warning: This blog is not designed to replace professional advice. It has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the advice, in light of your own objectives, financial situation or needs before making any decision as to what is appropriate for you.

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Finance EducationGovt Home Guarantee Scheme – 40,000 Extra Spots