Changes to the Home Guarantee Scheme Benefit First Home Buyers
Government schemes play a vital role in assisting first home buyers in entering the property market. Exciting news awaits those seeking a helping hand, as the Home Guarantee Scheme is set to expand its eligibility criteria, making it easier for more people to buy homes.
Effective from July 1, 2023, certain qualifying requirements will change, opening up new opportunities for aspiring homeowners.
1. Eligibility Expansions to Foster HomeownershipÂ
The Home Guarantee Scheme is broadening its reach through several eligibility expansions, aimed at aiding different categories of buyers:
a) First Home Guarantee and Regional First Home Buyer Guarantee:
– Friends and family members can now join as joint applicants, extending the possibilities for eligible candidates.
– Non-first-home buyers who haven’t owned a property in the past decade will also be eligible, offering a second chance at homeownership.
b) Family Home Guarantee:
– Single legal guardians of children, including aunts, uncles, and grandparents, will now qualify for the scheme.
– Non-first-home buyers who haven’t owned a property in the last ten years can take advantage of this expanded opportunity.
Additionally, Australian permanent residents will be eligible for all three schemes, along with Australian citizens.
2. Updated Eligibility Criteria
The following information highlights the current eligibility requirements and how they will change from July 1, 2023:
Summary of Changes for First Home Guarantee and Regional First Home Buyer Guarantee:
Currently: Applicants must be first home buyers
From July 1: Expanded to include non-first-home buyers who have not owned a property in the last ten years.
Currently: Both applicants must hold Australian citizenship.
From July 1: Both Australian citizens and permanent residents will qualify.
Summary of Changes for Family Home Guarantee:
Currently: Eligible applicants are single natural/adoptive parents with dependents.
From July 1: Eligibility will include legal guardians of children, such as aunts, uncles, and grandparents.
Currently: Applicants must hold Australian citizenship.
From July 1: Australian citizens and permanent residents will both qualify.
3. Considerations and Competitive Nature
While the changes to the Home Guarantee Scheme expand eligibility, it’s essential to note that the number of available places per year remains limited. The scheme will continue to allocate 35,000 places for the First Home Guarantee, 10,000 for the Regional First Home Buyer Guarantee, and 5,000 for the Family Home Guarantee. As a result, securing a place under the scheme will be very competitive, and potential applicants should be prepared for this aspect.
4. Leveraging the Second Chance at Home Ownership
One of the significant benefits of the updated eligibility criteria is that individuals who haven’t owned a property for the qualifying period will have an opportunity for a fresh start in the realm of homeownership. This change acknowledges that circumstances can change, and individuals who may not have qualified previously now have the chance to achieve their dream of owning a home.
The Home Guarantee Scheme expansion is expected welcome more aspiring homeowners into the market. These changes, effective from July 1, 2023, will benefit non-first-home buyers, friends and family members, and single legal guardians of children. Aspiring homeowners should prepare for the competitive nature of securing a place under the scheme while embracing the second chance at homeownership provided by the updated criteria. To learn about how we can help you leverage these benefits, explore our first home owners service page.
