Mar 2022 2 Minutes
Article part of 2022-23 Federal Budget update
Affordable housing measures
The First Home Loan Deposit Scheme and Family Home Guarantee allow eligible individuals to purchase a home with as little as a 2% deposit, and the Government will guarantee the loan, removing the need for lenders mortgage insurance. Currently, guarantees are limited to 10,000 per year. From 1 July 2022, changes to the existing home guarantee schemes will be made by allocating a total of 50,000 guarantees as follows:
- 35,000 places under the First Home Guarantee (formerly the First Home Loan Deposit Scheme)
- 5,000 places under the Family Home Guarantee targeting single parents regardless of any previous home ownership
- 10,000 places under a new Regional Home Guarantee targeting individuals who have not owned a home in five years who relocate to a regional location and can supply a 5% deposit.
The Family Home Guarantee and Regional Home Guarantee places are provided until 30 June 2025, whilst the 35,000 First Home Guarantee places are proposed to continue indefinitely.
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