Ahead of the Federal Budget’s official release, the Labor Government confirmed the expansion of its eligibility criteria for access to the Home Guarantee Scheme, in an attempt to address the housing affordability crisis and widening the ability for Australia’s to access the property market.
Under the changes, from 1 July, “eligible individuals” (categorised as friends, siblings, and other family members) will be able to jointly apply for the First Home Guarantee and Regional First Home Guarantee Schemes.
Prior to the announcement, eligibility criteria were restricted to married and single people, and those in de-facto relationships.
Via the program, the Federal Government will act as a guarantor on up to 15 per cent of a home loan. In doing so, this enables eligible home buyers to purchase a property with a 5 per cent deposit, without the need to pay Lenders Mortgage Insurance.
Additionally, as part of the extended eligibility criteria, access to each scheme will also be made available to Permanent Residents, in addition to full Australian citizens.