Labor’s win in the 2022 Australian elections brought a change in the government schemes available to first-home buyers and those who currently don’t own property.
What Government Home Buying Schemes Are Available After The 2022 Election?
The Labor government has introduced two new government schemes for home buyers.
The Labor government will continue to provide two schemes from the Home Guarantee Scheme:
All of these allow either first home buyers or those who currently don’t own property to buy a home with a small deposit, without paying Lenders Mortgage Insurance (LMI).
|Details||Help To Buy||Regional First Home Buyer Support Scheme||First Home Guarantee||Family Home Guarantee|
|What is it?||It is a shared equity scheme where the government contributes 40% for new builds and 30% for existing properties.||It is a guarantor scheme where the government guarantees loans so borrowers avoid LMI.||It is a guarantor scheme where the government guarantees loans so borrowers avoid LMI.||It is a guarantor scheme where the government guarantees loans so borrowers avoid LMI.|
|Who’s it for?||Low- to middle-income earners who currently don’t own property||Only first home buyers who already live in regional areas||Only for first home buyers||Single parents with at least one child dependant|
|How many places are available?||10,000 each year||10,000 each year||35,000 each year||5,000 each year|
|What is the minimum deposit required?||2%||5%||5%||2%|
|What is the income cap?||$90,000 for singles and $120,000 for couples||$125,000 for singles and $200,000 for couples||$125,000 for singles and $200,000 for couples||$125,000|
|When is it available?||The government has not confirmed a date for when the scheme will commence.||1 January 2023||Available now; however, from 1 July 2022, price caps have increased and more places have become available||Available now|
What Proposed Government Schemes Will Not Be Available?
- The Regional Home Guarantee is replaced by the Regional First Home Buyer Support Scheme
- The Super Home Buyer Scheme was proposed by the Coalition. Since the Coalition lost the 2022 federal election, this scheme will not be available.
- The New Home Guarantee Scheme will not be available from 1 July 2022.
Not sure which scheme is right for you? Our mortgage brokers can help you navigate the process and choose the right scheme for you. Call us on 1300 889 743 or enquire online today.