More Australian first home buyers will soon become eligible for the Home Guarantee Scheme, thanks to new changes to its criteria announced by the Federal Government
*What’s the Home Guarantee Scheme?*
These schemes allow eligible borrowers to purchase their first home with a deposit as small as 5% (or even 2% for the Family Home Guarantee) of the property value. As the government effectively acts as a guarantor for the loan, these borrowers may be able to save thousands of dollars in Lenders Mortgage Insurance (LMI) charges.
**What’s Changing?**
While these schemes have previously been limited to single and couple applicants who meet eligibility criteria, the following changes have been announced to take effect from 1 July 2023:
- Friends, siblings and other family members will be eligible for joint applications under the First Home Guarantee and the Regional First Home Buyers Guarantee.
- The guarantees will be expanded to non-first-home buyers who haven’t owned a property in Australia in the last ten years.
- The Family Home Guarantee will be expanded from single natural or adoptive parents with dependents to eligible borrowers who are single legal guardian of children such as aunts, uncles and grandparents.
- All three guarantees will also become available to eligible borrowers who are Australian Permanent Residents, in additional to Australian citizens.
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