The federal government will be rolling out an expansion of its Home Guarantee Scheme, adding a specific boost for homebuyers in regional areas.
The expansion of the scheme is part of the 2022‑23 Budget and will pave the way for more homebuyers to be able to break into the market with as small as 5% deposit.
One big feature of the expansion is the planned roll out of 10,000 guarantees each year from 1 October 2022 to 30 June 2025 under a new Regional Home Guarantee.
The Regional Home Guarantee will support eligible homebuyers, including non-first-time buyers and permanent residents, to purchase of construct a new home in regional areas.
Housing Industry Association (HIA) managing director Graham Wolfe said the introduction of the Regional Home Guarantee has the potential to boost home building in regional markets.
“Many people have chosen to move to regional areas over the last two years to build a new life, placing pressure on housing affordability in these areas,” he said.
“Supporting home building at the same time as supporting people re-enter the housing market can make a real difference.”
Meanwhile, the First Home Guarantee receives a boost in terms of the number of places available, which will be at 35,000 guarantees annually starting 1 July 2022.
The First Home Guarantee Scheme allows first-home buyers to enter the market to buy a new or existing home with only 5% deposit.
The expansion will also include a newer version of the Family Home Guarantee, which will now have 5,000 guarantees each year from 1 July 2022 to 30 June 2025 to help single-parent families start their home ownership journey with only 2% home loan deposit.
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