First Home Guarantee Changes Open Doors for First Homebuyers
Significant changes to the Government's First Home Guarantee scheme are now in effect, opening up a wider range of suburbs for first homebuyers who have struggled to enter the property market. The scheme allows eligible first-timers to access home loans with five per cent deposits immediately, instead of the originally planned start date next year.
Expanded Scheme Details
Through the expanded First Home Guarantee, the Government will guarantee a portion of a first homebuyer’s loan, enabling eligible buyers to purchase property with a significantly lower deposit and avoid paying Lenders Mortgage Insurance. This removes a major financial hurdle for many aspiring homeowners.
- Eligible first homebuyers must be Australian citizens or permanent residents, at least 18 years old.
- The purchased property must be the buyer's primary residence.
- There is no limit to the number of places available under the scheme.
Property Price Caps Increased
The scheme includes updated property price caps in South Australia (SA). In metropolitan Adelaide, the cap has increased to $900,000, up from $600,000 under the previous scheme. For rural SA, the cap has risen to $500,000, an increase from $450,000. This change allows for a greater selection of properties to be considered.
Government and Industry Response
Prime Minister Anthony Albanese emphasized the government's commitment to helping young people and first home buyers achieve home ownership sooner. "Bringing the start date of our 5 per cent deposit scheme forward will do just that," he stated. The initiative reflects the government's mandate to ease the deposit burden for first-time buyers.
"Bringing the start date of our 5 per cent deposit scheme forward will do just that," - Prime Minister Anthony Albanese.
Impact on Homebuyers
Michael Hickinbotham, Managing Director of Hickinbotham Group, stated that buying a first home has become significantly easier. "Our customers have been waiting for these changes to take effect, giving them a faster, simpler and smoother path to home ownership," he said. He further noted the significant impact of combining the scheme with other available grants and exemptions.
Hickinbotham added, “Home buyers now have a broader range of properties to choose from, can shave years off the time it takes to save for a deposit and can avoid spending tens of thousands of dollars on Lenders Mortgage Insurance. This is welcome relief for home buyers.”
Real-Life Impact
Small business owners Dylan Woolford, 25, and Bella Scott, 24, are planning to build with Hickinbotham at Munno Para Downs. As lifelong renters, they are excited to be the first in their families to own a home. They noted that "The expanded First Home Guarantee has made more properties and home designs available to us, rather than being locked into a smaller property."
For more information, visit www.housingaustralia.gov.au
