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What changes are being made to the Australian Home Guarantee Scheme?

July 4, 2024

This question is important for first-home buyers as we begin the new financial year (FY2024-25).

Starting from 1 July 2024, the Home Guarantee Scheme (HGS) will provide more support to eligible home buyers, including first-time buyers, single parents, and people in regional areas, to purchase a home sooner.

For the 2024-25 financial year, 50,000 new places are available across three Scheme guarantees: 

  • First Home Guarantee (FHBG): This supports eligible home buyers in purchasing a home sooner with a deposit as low as 5%. For FY2024-25, 35,000 places are available.
  • Regional First Home Buyer Guarantee (RFHBG): This helps eligible regional home buyers purchase a home sooner in a regional area with a deposit as low as 5%. For FY2024-25, 10,000 places are available.
  • Family Home Guarantee (FHG): This assists eligible single parents and single legal guardians of at least one dependent in buying a home sooner with a deposit as low as 2%. For FY2024-25, 5,000 places are available.

The HGS is an Australian Government initiative administered by Housing Australia and available through 32 participating lenders. Since its inception in January 2020, more than 160,000 Australians have bought or built their own homes with support from the Scheme.

Housing Australia works with participating lenders to facilitate loans to eligible home buyers who meet income eligibility thresholds and other eligibility criteria and don’t have the 20% deposit typically required for a home loan.

Eligible home buyers can apply for a loan through a participating lender whom Housing Australia has authorised to participate in the HGS. You can talk to a financial specialist such as Our Broker for more information about the available guarantees.  

Housing Australia provides a guarantee to participating lenders of up to 15% of the home loan value under the First Home Guarantee or the Regional First Home Buyer Guarantee and up to 18% under the Family Home Guarantee. This support allows home buyers to purchase a home without paying Lender’s Mortgage Insurance (LMI), which can add thousands of dollars to the cost of buying a property. Note that the guarantee is not a cash payment or a deposit for a home loan, and eligibility criteria apply.

To learn more about whether you’re eligible for support through the Home Guarantee Scheme, contact Our Broker today at 1800 913 677.