Government-led housing initiatives have been updated in the Federal Government Budget, announced earlier this month. Along with the Family Home Guarantee, aimed at helping single parents buy a home with a two per cent deposit, the New Homes Guarantee program is being expanded, and the amount that first home buyers will be able to access under the First Home Super Saver Scheme is also increasing. Here’s more on each of these programs.
New Homes Guarantee Expanded
The First Home Loan Deposit Scheme (FHLDS) – also known as the New Homes Guarantee – is an Australian Government initiative supporting eligible first home buyers to build or purchase a first home with a deposit of as little as five per cent.
Administered by the National Housing Finance and Investment Corporation (NHFIC), the scheme guarantees to participating lenders up to 15 per cent of the value of a property being purchased. Accessing the scheme means eligible first home buyers are not required to pay Lenders’ Mortgage Insurance (LMI).
An additional 10,000 places are being made available for the 2021-22 financial year from 1 July 2021. This is in addition to the 10,000 places already available under the First Home Loan Deposit Scheme.
For more information regarding participating lenders and eligibility criteria, visit the NHFIC website.
First Home Super Saver Scheme (FHSSS)
As part of the 2021-22 Federal Budget, the Australian Government announced changes to the way the First Home Super Saver Scheme (FHSSS) will be operated.
First introduced as part of the 2017–18 budget, the scheme allows taxpayers to make voluntary contributions of up to $50,000 which — including before-tax contributions, like salary sacrifice and after-tax contributions — can later be withdrawn to buy their first home.
From 1 July 2022, eligible home buyers will be able to access up to $50,000 of their funds to use towards the purchase of a first home. This amount is up from the current $30,000.
The amendments are expected to come into effect from 1 July 2022, with retrospective application from 1 July 2018.
If you have questions about accessing any of the Government First Home Buyer initiatives or you need assistance applying for these, get in touch with a Mortgage Express mortgage broker.
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