Buy Properties in Australia
Table of Contents
The Help to Buy Program
The Federal Government has introduced legislation into the Commonwealth Parliament to establish the Help to Buy Program that will be administered and monitored by Housing Australia. However, the program has not yet commenced.
The Home Guarantee Scheme (HGS)
The Home Guarantee Scheme (HGS) is an Australian Government initiative aimed at supporting eligible home buyers to purchase a property sooner. This scheme is administered by Housing Australia on behalf of the Australian Government.
Types of Guarantees
The HGS includes three types of guarantees:
- First Home Guarantee (FHBG)
- This guarantee is designed to support eligible home buyers in purchasing a home sooner, with a deposit as little as 5%.
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For the fiscal year 2023-24, there are 35,000 places available under this guarantee.
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Regional First Home Buyer Guarantee (RFHBG)
- This guarantee aims to assist eligible regional home buyers in buying a home sooner in a regional area, with a deposit as little as 5%.
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For the fiscal year 2023-24, there are 10,000 places available under this guarantee.
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Family Home Guarantee (FHG)
- This guarantee is specifically for eligible single parents and single legal guardians with at least one dependent, allowing them to buy a home sooner with a deposit as little as 2%.
- For the fiscal year 2023-24, there are 5,000 places available under this guarantee.
Please note that the New Home Guarantee (NHG) is no longer available. However, if a NHG place was reserved on or before June 30, 2022, it can still progress to settlement, subject to meeting eligibility criteria and NHG requirements and timelines.
How the HGS Works
Housing Australia collaborates with Participating Lenders to facilitate loans for eligible home buyers who meet income eligibility thresholds and other criteria but don’t have the typical 20% deposit required for a home loan.
Eligible home buyers can apply for a loan through a Participating Lender authorized by Housing Australia to participate in the HGS.
Housing Australia provides a Guarantee to the Participating Lender, covering up to 15% of the value of a home loan under the First Home Guarantee or the Regional First Home Buyer Guarantee, and up to 18% under the Family Home Guarantee. This Guarantee allows the home buyer to purchase a property without paying Lenders Mortgage Insurance. It’s important to note that the Guarantee is not a cash payment or a deposit for a home loan. Eligibility criteria apply.
Housing Australia has appointed a panel of 33 Participating Lenders who are authorized to offer the HGS.
For more information, please visit https://downunderrealty.com.
