There have been 5342 people in Melbourne’s southeast, and over 200,000 Australians who were able to purchase a home through an expanded Home Guarantee Scheme, according to the Federal Government.
The scheme (HGS), which allows eligible residents to purchase a home with as little as a 5 per cent deposit, also avoids the Lenders Mortgage Insurance, something that could cost thousands of dollars a year.
Bruce MP Julian Hill said that “many people in our community are finding it difficult to purchase their first home”.
“The State Government’s Home Guarantee Scheme is a lifeline for many young Australians who would otherwise not be able to get into the housing market.”
Administered by Housing Australia, the HGS includes three guarantees; the First Home Guarantee (FHBG), the Regional First Home Buyer Guarantee (RFHBG) and the Family Home Guarantee (FHG).
The first two carry the five per cent minimum deposit for the financial year of 2024 to 2025, with 35,000 places available through the FHBG.
The RFHBG suports regional homebuyers with 10,000 places available during the same financal period.
As for the FHG, this support extends only to single parents and eligible single legal guardians of at least one dependent, with the deposit being as low as two per cent, for the same financial period, and with 5000 places available.
“The Liberals only have one housing policy – the ‘Super for Housing’ scheme which would drain retirement savings and push up housing prices by about nine per cent in capital cities,” Hill said.
The eligibility criteria for the HGS was expanded by the Labor Government in 2023, which allowed friends, siblings and other family members to apply.
This also allowed non-first home buyers who have not owned a property in Australia the previous 10 years to access the scheme.
Of the 200,000 Australians who were supported through the scheme, more than 140,000 accessed the support since the current Labor Government was elected.
“Making it easier for Australians to own a home through schemes like Help to Buy and the Home Guarantee Scheme is so important,” Hill said.
“At the same time, boosting housing supply and increasing our construction workforce so we have some more homes for the future is also integral.”
Housing Australia works with Participating Lenders to facilitate loans to eligible homebuyers who would meet the income eligibility thresholds, as well as other criteria and don’t have the 20 per cent deposit that is usually required for a home loan.
Buyers can then apply for a loan through a participating lender who has been authorised by Housing Australia in order to take part in the HSG.
