The federal government will extend homeowner schemes as part of the 2022-23 budget, released on Tuesday, 29 March.
This budget will more than double the scope of the government’s Home Guarantee Scheme, which was supposed to end in June. Under the new measures, it will now offer 50,000 places a year.
The programs can only be used for homes under a certain price and differ by state and territory.
Extending the program, which encompasses the New Home Guarantee, Family Home Guarantee and First Home Loan Deposit scheme (previously known as the First Home Loan Deposit Scheme), will also include introducing a new funding initiative. The Regional Home Guarantee will be open to non-first home buyers.
This news has followed on the heels of Labour’s announcement that, if elected, they will institute a program aimed at tripling the number of places that Australians living in regional areas received last year under the current FHLDS.
The details were outlined in Tuesday’s budget. Treasurer Josh Frydenberg said he was confident the programs would help more people who had struggled to get into the market.
What are the significant changes to housing funding this year?
- Support for first homebuyers: 35,000 guarantees each year (up from the current 10,000), from 1 July 2022 under the First Home Guarantee. This will support first homebuyers to purchase a new or existing home with a deposit of as little as 5%.
- Support for regional homebuyers: 10,000 guarantees each year from 1 October 2022 – 30 June 2025 under a new Regional Home Guarantee. This will support homebuyers, including non-first homebuyers and permanent residents, purchasing or constructing a new home in a regional area, subject to enabling legislation.
- Expanding the Family Home Guarantee: 5,000 guarantees each year from 1 July 2022 to 30 June 2025 to expand the Family Home Guarantee. This will support single-parent homes with children purchasing their first home or re-entering the housing market with a deposit of as little as 2%.
The government reports the scheme has helped 60,000 Australians into a home since 1 January 2020.
Home guarantee schemes are only available to people buying a home for sale under the thresholds listed below.
|State/Territory||Price cap in the capital city (& major regional centres in NSW, VIC & QLD)||Price cap in the rest of the state/territory|
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