Exciting news for first-home buyers! The Home Guarantee Scheme is expanding its eligibility criteria from 1 July 2023. This means more people can participate in the different guarantee schemes offered under the Home Guarantee Scheme.
What is the Home Guarantee Scheme?
The Home Guarantee Scheme is a government initiative designed to help eligible first-home buyers enter the property market. It offers three different guarantees that aim to make it easier for Australians to secure a home loan. The three guarantees include the First Home Buyer Guarantee, the Regional First Home Buyer Guarantee, and the Family Home Guarantee.
What are the changes made in each of the schemes and their criteria?
First Home Guarantee: From 1 July 2023, friends, siblings, and other family members will be eligible for joint applications under the First Home Guarantee. Previously, only couples (married or in a de facto relationship) or single applicants were eligible. In addition, the scheme will also be open to eligible permanent residents, as well as those who have previously owned a property in Australia but is limited to those who haven’t owned it in the last 10 years.
Regional First Home Buyer Guarantee: Last year, the Albanese government introduced the Regional First Home Buyer Guarantee to support Australians living in regional areas. From 1 July 2023, the eligibility criteria will be broadened to include friends, siblings, and other family members for a joint application (same with First Home Guarantee). Former property owners will also be eligible to use this scheme however, this will be limited to those who haven’t owned a property in Australia in the last 10 years. This scheme will also be open to eligible permanent residents. The Regional First Home Buyer Guarantee provides 10,000 places per year until 30 June 2025.
Family Home Guarantee: The eligibility criteria for the Family Home Guarantee will also be expanded from single natural or adoptive parents with dependents to eligible borrowers who are single legal guardians of children such as aunts, uncles, and grandparents. This change means more Australians can access the scheme, which provides 5,000 places per year until 30 June 2025.
We’re here to help!
At Maverick Finance, we understand the importance of owning a home and the challenges that come with it. We are here to help guide you through the home loan process and provide you with the latest information on government initiatives such as the Home Guarantee Scheme. If you’re looking to buy your first home, upgrade to a family home, or invest in property, our team of experts can help you find the right home loan that suits your needs. Contact us today to learn more.
Maria Papa is a senior property and finance expert specializing in home loans, investment loans, self-employed loans, alt doc loans, car loans, personal loans, and loan protection. She has offices in Sydney, Melbourne, and Manila. If you have questions, you can call Maria at 0430 144 008 or email her at mpapa@maverickfinance.com.au
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