First Home Buyers can now join forces with friends, siblings and family
The Federal Government has announced the expansion of criteria for the Home Guarantee Scheme in an attempt to address the housing affordability crisis.
From 1st July 2023, friends, siblings and other family members will be able to jointly apply for the First Home Guarantee and Regional First Home Guarantee.
People who have previously owned a home will also be eligible, on the provision they haven’t owned a property in the last 10 years, in a bid to help those who had fallen into financial hardship.
For both the First Home Guarantee and Regional First Home Guarantee schemes, the Federal Government acts as guarantor on up to 15% of a loan. This enables eligible home buyers to purchase a home with as little as a 5% deposit and without paying Lenders’ Mortgage Insurance.
Housing Minister Julie Collins said the government was “moving to meet the times”.
“We know friends and family members are already teaming up to secure their own place to call home. Our actions will allow them to access vital assistance, just as couples have been able to previously,” she said.
Here’s what you need to know
- 5% deposit + costs.
- Australian Citizens or Permanent Residents.
- Eligibility income requirements $125k max single, $200k per couple.
- WA property price cap metro $600k, regional areas $450K.
- If regional, you must have lived in the area or adjacent regional area they are purchasing in for the preceding 12-month period.
In each financial year, 35,000 places are available across the First Home Guarantee, 10,000 places to 30 June 2025 under the Regional First Home Buyer Guarantee, and 5,000 places to 30 June 2025 under the Family Home Guarantee.
Not all lenders are involved with the scheme but a broker can help you to identify and compare participating lenders.
So give Sarah Chambers, Finance Broker with our partner Lendable a call today to see if you qualify. You might be packing your moving boxes sooner than you think!
Lending services provided by Finex Corporation Pty Ltd T/As Lendable. Corporate Credit Representative 526960 of Australian Credit Licence 410232 / ACN 080 877 498
