A significant expansion of criteria for the Home Guarantee Scheme is set to come into effect from 1st July 2023, with the aim to enhance the possibility of attaining the goal of purchasing a home for many Australians. The following updates to the Home Guarantee Scheme will occur on 1st July 2023:
50,000 new Home Guarantee Scheme places become available on 1 July for the 2023-24 financial year:
- The First Home Guarantee (FHBG) supports eligible home buyers with 35,000 places this financial year.
- The Regional First Home Buyer Guarantee (RFHBG) supports eligible home buyers in regional Australia, with 10,000 places this financial year.
- The Family Home Guarantee (FHG) supports eligible single parents or eligible single legal guardians of at least one dependent, with 5,000 places this financial year.
The following expanded Scheme eligibility criteria will be effective on 1 July:
- All Guarantees are now available to eligible borrowers who are Australian Permanent Residents, in addition to Australian citizens.
Permanent Resident has the same meaning as in the Australian Citizenship Act 2007 (Cth)
- The Family Home Guarantee has been expanded from single natural or adoptive parents of at least one dependent to eligible borrowers who are single legal guardians of at least one dependent, such as aunts, uncles and grandparents.
Single natural or adoptive parents of at least one dependent, as well as single legal guardians of at least one dependent as appointed by the court, with court issued documentation supporting guardianship (ie. Guardianship order).
- The First Home Guarantee and the Regional First Home Buyer Guarantee have been expanded to non-first home buyers who haven’t owned a property in Australia in the last ten years.
Applicants can be either first home buyers or previous owners who haven’t owned a property in Australia in the ten years prior to the date they execute their home loan. Prior property ownership includes a freehold interest in real property in Australia (this includes owning land only), an interest in a lease of land in Australia with a term of 50 years or more, or a company title interest in land in Australia.
- The First Home Guarantee and the Regional First Home Buyer Guarantee are now open to two applicants broadly i.e. friends, siblings, and other family members to make joint applications. These Guarantees were previously restricted to people who were married or in a de-facto relationship, in addition to single applicants.
Joint applicants may include partners, friends, siblings and other family members.
- The Regional First Home Buyer Guarantee now includes an exemption to the requirement to live in the region or adjacent region for the preceding 12 month period which may apply to some employees required by their current employer to relocate. An exemption was previously only available to Australian Defence Force members.