Tens of thousands of hopeful buyers can secure a property with a smaller deposit by locking down a spot on the latest home guarantee scheme.
From Saturday – the start of the next financial year – there will be 50,000 new places available for buyers hoping to jump on the property ladder with a smaller deposit, as the government guarantees a chunk of the loan.
The scheme will also be expanded to a broader cohort from the start of July.
For the first-home guarantee, which allows buyers to save up a deposit of as little as five per cent – the remaining 15 per cent is guaranteed by the government – friends, siblings and other family members will soon be able to lodge joint applications.
In the past, only married or de-facto relationships, as well as single applicants, were permitted to apply for the 35,000 annual places.
Plus, home buyers who have owned a property at some point but not in the past decade, will be allowed to apply.
These same expanded criteria will be applied to the regional first-home buyer scheme, which has 10,000 new places each year and is reserved for those living outside major cities.
The family home guarantee scheme will also be expanded to borrowers who are single legal guardians of children.
Another 5000 places will be available on July 1, which will allow single parents and guardians to secure a loan with a two per cent deposit.
Changes to social and affordable housing financing will also kick in at the start of the new financial year.
The National Housing Finance and Investment Corporation’s liability cap will be lifted from $5.5 billion to $7.5 billion.
By opening an extra $2 billion in low-cost and long-term finance, about 7000 more new social and affordable homes are expected to be built.
(Australian Associated Press)