Govt makes it easier for first home buyers & single parents to buy property
From July 1, the federal government will release a total of 30,000 openings in three different assistance programs aimed at first home buyers and single parent.
At the same time, the government will increase the price caps that apply to two of the programs, making them easier to access.
The three schemes allow eligible buyers to purchase a property with a deposit of anywhere from 2% to 5% (depending on the scheme). The government guarantees the ‘gap’ between that 2-5% deposit and a standard 20% deposit, so the buyer doesn’t get charged lender’s mortgage insurance (which generally applies when buyers have a deposit under 20%).
- Under the First Home Loan Deposit Scheme, 10,000 first home buyers can purchase existing homes with a 5% deposit.
- Under the New Home Guarantee, 10,000 first home buyers can buy or build new homes with a 5% deposit.
- Under the Family Home Guarantee, single parents (who may or may not be first home buyers) can purchase a property with a 2% deposit.
The schemes have price caps, which vary from region to region. From July 1, the caps will increase for the First Home Loan Deposit Scheme and Family Home Guarantee.