Home Guarantee Scheme To Be Substantially Expanded

The federal government has announced that in July, the Home Guarantee Scheme will be made available to permanent residents, co-habiting friends, and previous homeowners.

The Albanese Government is expanding the eligibility criteria for the scheme, including the First Home Guarantee, the Regional First Home Buyer Guarantee, and the Family Home Guarantee, as part of its efforts to address Australia's housing challenges.

The changes include allowing permanent residents to participate in the guarantee schemes, broadening eligibility criteria for joint applications, allowing more single guardians to use the Family Guarantee, and enabling previous property owners who haven't owned a property in Australia in the last ten years to join the scheme.

Currently, the guarantees are only available to Australian citizens, but from the new financial year, permanent residents will also be eligible. Additionally, from July 1, 2023, friends, siblings, and other family members will be able to apply jointly for the First Home Guarantee and the Regional First Home Buyer Guarantee.

Previously, these guarantees were only available to couples or single applicants. The Family Home Guarantee eligibility criteria will also be expanded to include single legal guardians of children, such as aunts, uncles, and grandparents.

The changes aim to support those who have fallen out of homeownership, for example, those who have experienced financial crisis or relationship breakdown. The scheme allows eligible first home buyers with a minimum 5 per cent deposit to enter the property market and avoid paying lenders' mortgage insurance. Instead, the government guarantees the remainder of the missing deposit (up to 15 per cent).

These changes build on last year's increase in the number of places available and the establishment of the Albanese Government's new Regional First Home Buyer Guarantee. In total, 35,000 places are available per year across the First Home Guarantee, 10,000 places per year to 30 June 2025 under the Regional First Home Buyer Guarantee, and 5,000 places per year to 30 June 2025 under the Family Home Guarantee.