More borrowers will be able to apply for the federal government’s Home Guarantee Scheme, with 40,000 new places now available.
The Home Guarantee Scheme includes the First Home Guarantee (FHBG), previously known as the First Home Loan Deposit Scheme, and the Family Home Guarantee (FHG).
The First Home Guarantee’s available places will now by 35,000 per financial year, up from the previous annual allocation of 10,000.
Meanwhile, the Family Home Guarantee will have an annual allocation of 5,000 places from 1 July 2022 until 30 June 2025.
According to the National Housing Finance and Investment Corporation (NHFIC) that administers the Home Guarantee scheme, the program has helped more than 61,000 Australians purchase, or build a home.
On top of the 40,000 places for the Home Guarantee Scheme, 10,000 places are available for the Regional First Home Buyer Support Scheme.
Changes to property price caps, lender panel
For the new financial year, the Home Guarantee Scheme will have increased price caps for both cities and regions.
Here are the new price caps:
|
Region |
FY 2022-23 Home Guarantee Scheme price cap ($AUD) |
|
NSW-capital city, regional centres (Newcastle, Lake Macquarie & Illawarra) |
$900,000 |
|
NSW-other |
$750,000 |
|
VIC-capital city, regional centres (Geelong) |
$800,000 |
|
VIC-other |
$650,000 |
|
QLD-capital city, regional centres (Gold Coast & Sunshine Coast) |
$700,000 |
|
QLD-other |
$550,000 |
|
WA-capital city |
$600,000 |
|
WA- other |
$450,000 |
|
SA- capital city |
$600,000 |
|
SA- other |
$450,000 |
|
TAS- capital city |
$600,000 |
|
TAS- other |
$450,000 |
|
ACT |
$750,000 |
|
Northern Territory |
$600,000 |
|
Jervis Bay Territory & Norfolk Island |
$550,000 |
|
Christmas Island & Cocos (Keeling) Island |
$400,000 |
Meanwhile, the lender panel was expanded — along with Commonwealth Bank and NAB as the two major lenders, over 30 non-major players will be able to provide the scheme to their clients.
- Australian Military Bank
- Australian Mutual Bank
- Auswide Bank
- Bank Australia
- Bank First
- Bank of Heritage Isle
- Bank of Us
- bcu
- Bendigo Bank
- Beyond Bank Australia
- Border Bank
- Community First
- Credit Union SA
- Defence Bank
- Firefighters Mutual Bank
- G&C Mutual Bank
- Gateway Bank
- Great Southern Bank
- Health Professionals Bank
- Indigenous Business Australia
- Illawarra Credit Union
- IMB Ltd (trading as IMB bank)
- Mortgageport
- MyState Bank
- Newcastle Permanent Building Society
- P&N Bank
- People's Choice
- Police Bank
- Q Bank
- Queensland Country Bank
- Regional Australia Bank
- Teachers Mutual Bank
- The Mutual Bank
- UniBank
- Unity Bank Limited
- WAW
Big boost to homebuyers
NAB executive for homeownership Andy Kerr said both younger and solo buyers are getting a foot on the property ladder sooner thanks to the Home Guarantee Scheme.
“People going at it alone shouldn’t be disadvantaged and we are seeing the Scheme help them buy a property,” Mr Kerr said.
“With a backdrop of house price growth slowing and in Sydney and Melbourne where it is going backwards, there is some relief in sight for first home buyers.”
And with flexible working arrangements, Mr Kerr said first-home buyers have more choice of locations, as regional markets become viable.
“In an uncertain market, it has never been more important to have confidence to buy. Getting a fast decision from your bank on a loan is absolutely crucial,” he said.
—
Photo by @4dgraphic on Unsplash.
Collections: Mortgage News
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