A quarter of borrowers failed to find a home under the Home Guarantee Scheme

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on December 09, 2021 Fact Checked
A quarter of borrowers failed to find a home under the Home Guarantee Scheme

The Federal Government announced it will reissue 4,600 unused grants for first home buyers - taking 'regifting to a new level'.

This includes both the Family Home Guarantee Scheme and its New Home Guarantee Scheme - geared at helping single-parent families and first home buyers respectively.

The government said it will reissue its unused guarantees to help first home buyers and single-parents buy homes with deposits as little as five and two percent respectively.

Up to 4,651 unused guarantees from the 2020/21 financial year will be available to buyers who haven't yet had an opportunity to purchase their first home.

This means that of the 20,000 spots that were available, almost a quarter of recipients were unsuccessful in finding a home.

This is greater than the last reissue, in which 18% of First Home Loan Deposit Scheme spots went unused.

Prime Minister Scott Morrison said that the government wants more first home buyers to get into the place of their dreams.

"The pandemic and lockdowns have interrupted the plans of many home buyers this year, so this is about ensuring we give thousands more families the opportunity they need," Mr Morrison said.

"We want to help Australians into their first home or a home that they've had built for them and their family, and with our support first home buyers are at their highest level in nearly 15 years."


Shadow Minister for Housing and Homelessness, Jason Clare, said that suggesting an extra 4,651 home buyers would benefit is taking 'regifting at Christmas to a new level'.

"These aren't new places - these are places out of the originally announced 20,000 cap for the year - regifted," Mr Clare told Savings.com.au.

"It’s harder to buy in Australia than ever before. Australians need more help to buy a home, not more lies from Scott Morrison."

Housing Minister Michael Sukkar said more than 300,000 Australians have been helped into home ownership through coupling the HomeBuilder and the first home super saver scheme.

This includes more than 60,000 Australians that have been assisted by the Home Guarantee Scheme.

"The Morrison government will continue to provide Australians who have that aspiration to go and buy a home, the opportunity to go and achieve that," Mr Sukkar said.


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Lender
Advertised rate Comparison rate* Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval

VariableMore details
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VariableMore details
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FixedMore details
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Fixed Home Loan 1 year (Principal and Interest) (LVR < 80%)

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  • Choose to rate lock for 90 days (fee applies)
VariableMore details
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  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.
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  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.
VariableMore details
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Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

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Rates correct as of January 17, 2022. View disclaimer.


Image by Jaye Haych on Unsplash

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.

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Rachel is a Finance Journalist, and joined Savings in 2021. Coming from a background in the FinTech space, her interests include the innovation of lending technology, property, investing, and more. With a passion for educating and informing people about their finances, she hopes to increase the financial literacy of everyday Australians.

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