Last March 29, 2022, Treasurer Josh Frydenberg released the federal budget for the fiscal years 2022-2023.
The budget for this year comes just months before a federal election, and it prioritizes issues like growing living costs, flood recovery, and property ownership.
Buying a home can feel like an out of reach dream in many locations around the country, with sky rocketing property prices. However, the initiatives of the federal budget that could assist first-time home buyers, single parents and eligible citizens comes in handy to alleviate Australia’s housing affordability crisis.
In this article, we explain what each of these home guarantee schemes is all about.
The Family Home Guarantee
Designed to help single parents with children who are looking to enter or return to the housing market. To provide a subsidized pathway into homeownership for additional single parents with dependents, the Family Home Guarantee will be raised to 5,000 spaces each year.
The First Home Guarantee
Formerly known as the First Home Loan Deposit Scheme, this scheme helps eligible first-time home buyers purchase a home sooner by guaranteeing up to 15% of the purchase price to participating lenders. As part of the scheme, up to 35,000 seats would be made available each year for qualified first-home buyers across Australia.
The New Home Guarantee
Designed to assist eligible first-time home purchasers who want to build or buy a new house by offering a guarantee to participating lenders for up to 15% of the property purchase price. From July 1, 2021, a second batch of 10,000 New Home Guarantees will be available.
The Rural Home Guarantee
Designed to help eligible citizens and permanent residents who haven’t owned a home in five years buy a new home in a regional location by guaranteeing up to 15% of the property purchase price to participating lenders. In 2022-23, the Rural Home Guarantees will be implemented.
Planning to buy a home? Find out if you qualify to any of these Government Homebuying Schemes.
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