As part of a major revision of three home-buying programmes, siblings and companions who wish to purchase a property together will be eligible for a federally funded boost. Thousands of Australians may benefit from the modifications to the first home guarantee, its regional equivalent, and the family housing guarantee that will be implemented on July 1.
First Home Guarantee Updated
The first home guarantee, which was previously only available to married or cohabiting couples and individuals, will expand the definition of a “couple” to include friends and relatives. Under the programme, the federal government guarantees up to 15 percent of a loan, allowing prospective purchasers to purchase a home with as little as a five percent down payment.
The programme also assists homebuyers in avoiding mortgage insurance premiums. The expansion reflects the fact that the path to homeownership and the composition of households have changed, as stated by Housing Minister Julie Collins*. “We are aware that friends and relatives are already working together to secure a place to call home,” she said. “Our actions will grant them access to critical assistance, just as couples have in the past.”
Non-First Home Buyers and Permanent Residence Mortgages
Guarantees will also be extended to non-first-time homebuyers who have not possessed a residence in Australia within the past ten years. Ms. Collins stated that the expansion would assist those who have lost their residence, typically due to a financial crisis or relationship breakup.
Ms. Collins stated, “These are sensible changes that will help ensure that more families have a safe and secure place to call home.” Additionally, all three guarantees will be made available to permanent residents in addition to Australian citizens. Each year, there are a total of 35,000 first-time homebuyer places, plus an additional 10,000 for the regional first-time homebuyer guarantee and 5,000 for the family home guarantee.