From 1st July 2021, 30,000 new places were made available under the Australian Government’s First Home Loan Deposit Scheme, the New Home Guarantee, and the Family Home Guarantee.
10,000 additional places have been released under the popular First Home Loan Deposit Scheme (FHLDS) for the 2021-2022 financial year. Unfortunately for prospective buyers it is not a cash handout, rather it replicates a parent guarantee situation with the Federal Government being guarantor instead of Mum & Dad. Which saves the LMI expense. And takes pressure off Mum and Dad.
Eligibility restrictions including the need for an initial 5% of the purchase price in ‘genuine saving’ and limits on purchase price apply. Existing (old) homes are eligible, note previous releases of this scheme were snapped up quickly and we expect that to again be the case.
The New Home Guarantee, first announced in October 2020, is specifically for eligible first home buyers building or buying a new home with a deposit of as little as 5 per cent. It has been extended under the 2021-2022 Federal Budget with 10,000 new places available from 1 July 2021 to 30 June 2022.
The Family Home Guarantee was announced in the 2021-2022 Federal Budget to support eligible single parents with at least one dependent child. 10,000 Family Home Guarantees will be made available over four financial years from 1 July 2021 to buy a new or existing home with a deposit of as little as 2 per cent.
Note these schemes are only available through a limited number of banks, applications can be made through your broker.
We continue to encourage prospective home buyers to speak to their broker who is a qualified credit adviser to be aware of what is required to enable home ownership. Financial strategy in property purchase can be complicated and is different for every individual in a different situation. Quality advice is paramount.
For more information about the Government Schemes, price caps, eligibility requirements, and how to apply, visit the NHFIC website, or contact your broker.