The new Home Guarantee Scheme offers an additional 50,000 places, under three categories:
- The First Home Guarantee.
- The Regional Home Guarantee.
- Family Home Guarantee.
The First Home Guarantee has been increased from 10,000 places to 35,000 places per year to assist first home buyers to purchase a new or existing property. The scheme guarantees up to 15 per cent of a buyer’s loan, allowing them to avoid lenders mortgage insurance (LMI).
Purchase price caps apply to this scheme at $600,000 for buyers in Brisbane, Gold Coast & Sunshine Coast and $450,000 for the rest of Queensland.
The new Regional Home Guarantee which will offer 10,000 places each year to first home buyers, people who have not owned a property in the past five years and permanent residents to buy or build new homes in regional areas.
To access the regional scheme, applicants must either build or purchase a newly built home. As with the First Home Guarantee, this scheme will allow candidates to purchase with a deposit as low as 5 per cent, once again, avoiding LMI.
This aims to encourage more construction outside of capital cities and encourage migrants to settle in regional areas.
The Family Home Guarantee will offer 5,000 spots per year which will be reserved exclusively to help single parents.
This category offers buyers an 18 per cent guarantee meaning they only require a 2 per cent deposit. Once again, avoiding LMI.
People making use of the First Home Super Saver Scheme (FHSSS) will also see changes.
The FHSSS lets buyers build a deposit within their super, giving them a tax cut and boosting the savings they can put towards a deposit.
From July 1, the maximum amount of voluntary contributions that can be released under the FHSSS will be increased from $30,000 to $50,000.
It’s important to note, for each of these schemes, a person is not eligible if they earn more than $125,000 a year and $200,000 for couples.
Even with this newly announced assistance, property prices are still rising, and many have concerns the Australian dream of home ownership is now out of reach for many.
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