Government's Home Guarantee Scheme expanded to 50,000 spots

author-avatar By
on March 28, 2022 Fact Checked
Government's Home Guarantee Scheme expanded to 50,000 spots

Treasurer Josh Frydenberg has revealed the Federal Government's Home Guarantee Scheme is set to expand in the upcoming budget to 50,000 places each year.

The Federal Government will continue to support aspiring home owners, with the expansion of the Home Guarantee Scheme locked in as part of the 2022‑23 Budget. 

The Home Guarantee Scheme ensures part of an eligible buyer's home loan is guaranteed by the Government, meaning Australians can buy a home sooner with a smaller deposit and without the need to pay lenders mortgage insurance (LMI)

Three schemes, 50,000 places

Through the expanded Home Guarantee Scheme, 35,000 New Home Guarantees will be made each year up from the current 10,000 from 1 July 2022.

This will support eligible first home buyers to purchase a new or existing home with a deposit as low as 5%.

Ten thousand spots each year from 1 October 2022 to 30 June 2025 will be made under the 'Regional Home Guarantee'.

This will to support eligible home buyers, including non-first home buyers and permanent residents, to purchase or construct a new home in regional areas.

From 1 July 2022 to 30 June 2025, an extra 5,000 spots will be made available each year for the Family Home Guarantee initially announced in last year’s budget.

This scheme is targeted specifically to single parent families supports eligible single parents with children to buy their first home or to re-enter the housing market with a deposit of as little as 2%.

To be eligible for the scheme, homes must be valued at $700,000 or less in metropolitan areas or $500,000 in regional areas.

All three components of the scheme will be open to singles earning up to $125,000 and couples with a combined household income of $200,000.

Read more: What's in store in the upcoming Federal Budget? 

NAB Group Executive Personal Banking Rachel Slade said the schemes have helped thousands of Australians purchase a home earlier than they thought possible.

“Price growth has made it more challenging for many Australians to enter the housing market, which is why support measures such as these are so important," Ms Slade said. 

Included in the expansion is a new Regional Home Guarantee open to non-first home buyers, promoting new builds in regional areas.

rHIA Managing Director Graham Wolfe said 77% of Australians still believe owning their own home makes them financially secure, yet the deposit gap continues to be the biggest barrier to home ownership.

"The first home loan deposit scheme has clearly proven its value over the last three years, helping more than 30,000 households buy their first home," Mr Wolfe said. 

"The introduction of the Regional Home Guarantee has the potential to help these home buyers but also to boost home building in the regions."


Building a home? This table below features construction loans with some of the lowest interest rates on the market.

Lender

Variable
More details
GET A DISCOUNTED GREEN RATE
  • Interest Only during construction
  • No monthly, annual or ongoing fees
  • Get Australia’s lowest rate construction loan when you go green
GET A DISCOUNTED GREEN RATE

Green Construction Home Loan (Interest Only)

  • Interest Only during construction
  • No monthly, annual or ongoing fees
  • Get Australia’s lowest rate construction loan when you go green
Variable
More details
100% FULL OFFSET ACCOUNT
100% FULL OFFSET ACCOUNT

Offset Package Home Loan (Principal and Interest) (LVR < 60%)

    Variable
    More details
    BUNDLE YOUR HOME LOAN AND YOUR INVESTMENT LOAN FOR MORE SAVINGS
    BUNDLE YOUR HOME LOAN AND YOUR INVESTMENT LOAN FOR MORE SAVINGS

    Yard Investor Bundle Loan (Bundled with Home Loan)

      Variable
      More details
      AN EASY ONLINE APPLICATION
      AN EASY ONLINE APPLICATION

      Yard Investment Loan (Principal and Interest) (LVR < 80%)

        Variable
        More details
        100% FULL OFFSET ACCOUNT
        100% FULL OFFSET ACCOUNT

        Offset Package Home Loan (Principal and Interest) (LVR 60%-70%)

          Variable
          More details
          GREAT FLEXIBLE LOAN OPTIONS
          GREAT FLEXIBLE LOAN OPTIONS

          Basic Home Loan (Principal and Interest) (LVR 70%-80%)

            Variable
            More details
            FREE REDRAW FACILITY
            • Pay more to reduce the amount of interest you pay
            • Easily access additional funds in your redraw
            • Great rates and low fees
            FREE REDRAW FACILITY

            Basic Investment Loan (Principal and Interest) (LVR < 60%)

            • Pay more to reduce the amount of interest you pay
            • Easily access additional funds in your redraw
            • Great rates and low fees
            Variable
            More details
            • Pay more to reduce the amount of interest you pay
            • Easily access additional funds in your redraw
            • Great rates and low fees

            Yard Investment Loan (Principal and Interest) (LVR > 80%)

            • Pay more to reduce the amount of interest you pay
            • Easily access additional funds in your redraw
            • Great rates and low fees

            Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of June 29, 2022. View disclaimer.


            Image by Rodnae Productions via Pexels. 

            Disclaimers

            The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

            Latest Articles

            author-avatar
            Jacob Cocciolone joined the Savings team in 2021 as a Finance Journalist. Driven by a passion for keeping Australians up to date with the latest financial news and trends, his areas of interest include financial technology, investing, property and motoring.

            Collections:

            Be Savings smart.
            Subscribe for free money newsletters.

            By subscribing you agree
            to the Savings Privacy Policy