Commencing 1 July, 50,000 new places are on offer to first home buyers and single parents, across Australia, under the Federal Government Home Guarantee Scheme.

This scheme allows eligible property buyers to purchase a home with a deposit as little as 5% for first home buyers or 2% for single parents without having to pay lenders mortgage insurance.

The allocation of these places for the 2024 - 2025 financial year is as follows:

35,000 – First Home Buyer Guarantee

10,000 – Regional First Home Buyer Guarantee

5,000 - Family Home Guarantee

The Home Guarantee Scheme has strict eligibility conditions and is only available through an approved panel of lenders. Under all three schemes, applicants must purchase a property to live in, the scheme is not available for the purchase of an investment property.

First Home Buyer Eligibility Criteria:

1) Individuals who earn up to $125,000 per year or couples with a combined income of up to $200,000. (based on the previous financial year income)

2) Must have genuine savings of at least 5% of the property value including fees

3) Must be Australian citizens, permanent residents or New Zealand citizens on a 444 Visa

4) Minimum 18 years of age.

5) Eligible for singles, couples who are married or defacto or any other persons buying together such as siblings, friends or other family members.

6) Loans must be for owner occupied purposes with principal and interest repayments

7) Individuals who have not had previous ownership or interest in a residential property in the last 10 years

8) Maximum property purchase price caps vary from state to state

Family Home Guarantee Eligibility

1) Must be an Australian citizen over 18 years of age

2) Maximum previous financial year taxable income of $125,000(not including child support payments)

3) Must be a single parent with at least one natural, adoptive or legal dependent under 18 years of age

4) Single parent must show they are legally responsible for the day-to-day care, welfare and development of the child who is in their care. Depending on the terms of any shared custody arrangement, this may enable both individuals in a former couple to separately access Guarantee

5) Must have genuine savings of 2% of the property value

6) Single parent must be the only name listed on the property certificate of title

7) Applicable to either first home buyers or previous home occupiers who do not currently own a home. There are no restrictions on prior home ownership, but applicants cannot currently own a home

8) Marital status must be Single, Divorced or Widowed. Applicants who are Married, Defacto or Separated are not eligible

9) Maximum property purchase price caps vary from state to state

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Contact an Assured Lending Mortgage Broker for more information on your eligibility and details on how the scheme works

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