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Home buyer scheme extended: What is available to you

Home buyer scheme extended: What is available to you

28 Mar, 2022 - 4 min read

The federal government has announced an expansion to its first home buyer and single parent buyer schemes, increasing access with 50,000 new placements in Tuesday’s budget.

This increase will be spread across the current first home buyer assistance schemes, including the Home Buyer Schemes and Family Home Guarantee, as well as in a new home buyer scheme for regional property.

Regional buyers are to see increased accessibility to purchasing property through the Regional Home Guarantee announced by the Coalition in Tuesday’s budget. Labor also revealed a regional buyer support scheme only days earlier.

These schemes may come to the relief of would-be buyers, with any assistance being rolled out or extended to combat the issue of housing affordability in Australia potentially good news.

Guide to Australian home buyer schemes and grants

There are several home buyer schemes, as well as grants and concessions currently available for eligible home buyers. Including the proposed extensions to these schemes in Tuesdays’ budget, here is what would-be buyers need to know.

Scheme	About	Eligibility
First Home Loan Deposit Scheme	Also called the First Home Guarantee, it allows would-be buyers to purchase a new or existing home with a deposit of only 5% and avoid paying Lender’s Mortgage Insurance, as the government guarantees the loan. Places will be extended from 10,000 to 35,000 each year from July.	Australian citizen 18-years or older Income cap of $125,000 for individuals, and $200,000 for couples Must be owner-occupiers Must be first home buyers New and existing homes
New Home Guarantee	Allows would-be buyers to build or buy a new home with a deposit of only 5% and avoid paying Lender’s Mortgage Insurance, as the government guarantees the loan. Places will be extended from 10,000 to 35,000 each year from July.	Australian citizen 18-years or older Income cap of $125,000 for individuals, and $200,000 for couples Must be owner-occupiers Must be first home buyers Building or buying a new home
Family Home Guarantee	Assists single parents purchasing property with a deposit as little as 2% to avoid Lender’s Mortgage Insurance as government guarantees the loan. Places will be extended by 5,000 each year.	Australian citizen 18-years or older Single person with at least one dependent child For first home buyers or previous owners who do not currently own a home
First Home Super Saver Scheme	Allows eligible first home buyers to make extra contributions into their super fund with the returns to be put towards a property deposit. Amount of eligible contributions increased from $30,000 to $50,000 as of 1 July 2022.	Australian citizen 18-years or older First home buyer
First Home Owner Grants	A one-off grant paid to eligible first home buyers. The amount available to eligible Australians will differ per state or territory.	Check your state or territory’s Revenue website for eligibility criteria.
Stamp Duty Concessions and Exemptions	First home buyers may be exempt from paying stamp duty, or receive a concession on full price, depending on the state or territory.	Check your state or territory’s Revenue website for eligibility criteria.

Source: RateCity.com.au, nhfic.gov.au, ATO.gov.au

Regional home buyers scheme revealed

The federal government has also revealed 10,000 placements for regional home buyers, including those who have already bought, purchase or construct a new home in regional areas.

The Regional Home Guarantee could be rolled out each year from October 2022 to July 2025, according to the Tuesday budget.

Prime Minister Scott Morrison said of the purpose behind this scheme: “It’s hard to buy a home, particularly hard to buy in Sydney but it’s hard all across the country. And it’s been increasingly hard in rural and regional areas, particularly over the last few years."

Labor also announced a similar regional buyer scheme only days ago under an Albanese Labor Government, including 10,000 first home buyer placements to purchase property with a deposit as little as 5%. It aims to “bring back ownership” to tens of thousands of Australians in regional areas over the next few years.

With regional migration at record-highs pushing up property prices, thanks to the flexibility of work-from-home regulations amidst the pandemic, any support that can be extended to regional home buyers may be appreciated.

Disclaimer

This article is over two years old, last updated on March 28, 2022. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent home loans articles.

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This article was reviewed by Personal Finance Editor Mark Bristow before it was published as part of RateCity's Fact Check process.

Alex Ritchie

Personal Finance Editor

Alex Ritchie was a Personal Finance Writer and Editor at RateCity, and has been writing about Australian finance for over six years. Her expertise and passion covers loans, credit, superannuation, and closing the gender pay gap, and she aims to help young Aussies to overcome their financial apathy. Alongside RateCity, Alex has been published in numerous publications, including Australia's Money Magazine, Business Insider, Lifehacker Australia, and in health via NPS MedicineWise.