The Morrison Government will release an additional 30,000 places to eligible applicants under the First Home Loan Deposit Scheme, the New Home Guarantee program, and the Family Home Guarantee from 1 July 2021.
Since the introduction of the First Home Loan Deposit Scheme and New Home Guarantee, almost 30,000 Australians have been able to enter the housing market.
As announced in the 2021-22 Budget, the Government will establish the Family Home Guarantee to support single parents with dependants, subject to the passage of legislation.
Starting 1 July 2021, 10,000 guarantees will be made available to eligible single parent families to build a new home or purchase an existing home with a deposit of as little as 2 per cent.
Assistant Treasurer and Minister for Housing Michael Sukkar said that the new places will assist Australians in achieving the aspiration of home ownership.
“The First Home Loan Deposit Scheme has been a landmark success of the Morrison Government since its commencement in 2020. 30,000 first home buyers have been supported into home ownership through First Home Loan Deposit Scheme and New Home Guarantee already,” Minister Sukkar said.
“We know how difficult it can be to buy a new home or re-enter the housing market, and that saving a deposit is the hardest part of getting into home ownership. That’s why the Morrison Government has established the new Family Home Guarantee, which recognises the challenge of saving for a deposit is that much more difficult when you are a single parent with children.
“By supporting single parents and their children, we are helping them achieve the security and dignity that home ownership provides.
“Through our First Home Loan Deposit Scheme and the New Home Guarantee Program, the Morrison Government is helping more first home buyers and single parent families overcome the challenges of saving for a deposit and realising the Australian dream of owning your own home.
“With the 30,000 new places available from 1 July, now is the time for potential applicants to contact a participating bank or mortgage provider and get their applications underway.”
The New Home Guarantee commenced on 6 October 2020 as a temporary expansion of the First Home Loan Deposit Scheme. It will provide an additional 10,000 places for first home buyers seeking to build a new home or purchase a newly built dwelling with a deposit of 5 per cent and a construction commencement timeframe of 12 months.
To ensure that people can continue to purchase a home, as well as accommodate larger families under the Family Home Guarantee, the Government is also announcing the new property price caps under the First Home Loan Deposit Scheme.
These new property price caps will also apply to the Family Home Guarantee, while the same property price caps apply under the New Home Guarantee:
First Home Loan Deposit Scheme and Family Home Guarantee property price caps, effective 1 July 2021New Home Guarantee property price caps, effective 6 October 2020
The capital city price thresholds apply to regional centres with a population over 250,000, recognising that dwellings in regional centres can be more expensive than other regional areas. Regional centres include: Newcastle and Lake Macquarie; Illawarra (Wollongong); Geelong; Gold Coast and Sunshine Coast.
Information on how to apply, eligibility requirements and the participating panel of lenders, is available on the NHFIC website.
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