The government has announced higher price caps for 2022-23 for parts of its expanded Home Guarantee Scheme, which includes the First Home Guarantee (formerly the First Home Loan Deposit Scheme), the Family Home Guarantee and the proposed new Regional Home Guarantee.
(Note: the New Home Guarantee, introduced as a pandemic measure, expires on 30 June 2022.)
From 1 July 2022, first home buyers can purchase more expensive properties under the Family Home Guarantee and First Home Guarantee. Caps for the proposed Regional Home Guarantee will be announced later, if the legislation passes Parliament.
Here are the current price caps and the incoming ones taking effect from 1 July:
|Region||FY 2021-22||FY 2022-23||Difference|
|NSW – Sydney & regional centres
(Newcastle, Lake Macquarie & Illawarra)
|NSW – rest of state||$600,000||$750,000||$150,000|
|VIC – Melbourne & regional centre
|VIC – rest of state||$500,000||$650,000||$150,000|
|QLD – Brisbane & regional centres
(Gold Coast & Sunshine Coast)
|QLD – rest of state||$450,000||$550,000||$100,000|
|WA – Perth||$500,000||$600,000||$100,000|
|WA – rest of state||$400,000||$450,000||$50,000|
|SA – Adelaide||$500,000||$600,000||$100,000|
|SA – rest of state||$350,000||$450,000||$100,000|
|TAS – Hobart||$500,000||$600,000||$100,000|
|TAS – rest of state||$400,000||$450,000||$50,000|
|Jervis Bay Territory & NorfolkIsland||$550,000||$550,000||–|
|Christmas Island and Cocos (Keeling) Islands||$400,000||$400,000||–|
All of the schemes allow you to buy a property with a deposit of as little as 2% or 5%, without paying Lenders Mortgage Insurance (LMI). Usually, LMI is applicable when you borrow more than 80% of the property value.
- First Home Guarantee: First home buyers can buy or build a home with a 5% deposit.
- Family Home Guarantee: Single parents can buy or build a home with a 2% deposit.
- Regional Home Guarantee: The new Regional Home Guarantee will provide up to 10,000 places each year from 1 October 2022. The price caps for this scheme are yet to be announced.
The eligibility criteria differs for each scheme. Our mortgage brokers can tell you if you qualify.
There are other options available if you don’t qualify for the scheme:
- A guarantor home loan is the best option that allows you to borrow 100% of the property value.
- Lenders also offer no deposit and small deposit home loan options, if you’ve saved at least a 5% deposit for a home loan.
We’re here to help. Call us on 1300 889 743 or enquire online today.