As the real estate market continues to evolve, so do the opportunities for aspiring homeowners. At Brown Property Group, we understand the importance of providing accessible pathways to homeownership, so we thought we’d share some news regarding the Federal Government’s decision to expand eligibility criteria for the Home Guarantee Scheme (HGS).
The changes will see eligibility criteria relaxed for the First Home Guarantee, the Regional First Home Buyer Guarantee, and the Family Home Guarantee. Hopefully opening up new avenues for individuals and families to purchase land and build their dream homes.
Each of these schemes allows eligible borrowers to purchase a home with as little as 5% (or even 2% for the Family Home Guarantee) deposit. As the government effectively acts as a guarantor on the loan, borrowers can save thousands of dollars in Lenders Mortgage Insurance (LMI) fees.
So, what exactly does the expanded eligibility entail?
First Home Guarantee and Regional First Home Guarantee changes
Previously the First Home Guarantee and Regional First Home Guarantee schemes were restricted to married and single people, as well as those in de facto relationships.
From 1 July 2023, friends, siblings and other family members will now also be able to jointly apply. These schemes will also be available to non-first-home buyers who have not owned a property in the past 10 years.
Income thresholds have also been raised to $140,000 for singles and $200,000 for couples, further widening the reach of the scheme and allowing more individuals and families to participate.
Family Home Guarantee changes
The criteria for Family Home Guarantee applicants will also be expanded beyond just single natural or adoptive parents with dependents.
The guarantee will now be available to eligible borrowers who are single legal guardians of children, such as aunts, uncles and grandparents.
Permanent residents also able to take part
The availability of all three guarantees will also be expanded to include permanent residents in addition to Australian citizens.
These expanded criteria will be a game-changer, enabling a broader range of prospective homeowners to access the HGS. For those who have been diligently saving and dreaming of building their own home, this is a great chance to make those dreams a reality. Whether you’re a young professional looking to settle down, a growing family in need of more space, or even someone seeking a change of scenery, Brown Property Group is here to help you navigate this exciting journey.
The expansion of eligibility criteria for the HGS is an exciting development for prospective homeowners, and Brown Property Group is looking forward to helping more people realise their homeownership goals. Get in touch with us today to discover which of masterplanned communities is right for you!
For more detailed information, and to learn more about the application process, we encourage you to explore the NHFIC’s official website.