For all those buyers looking to purchase their first home, or those trying to purchase a home as a single parent, July 1st heralded the release of a new allocation of 50,000 assistance packages as part of the Home Guarantee Scheme. This program is designed to assist people who might otherwise find it exceedingly difficult to purchase a property.

The Home Guarantee Scheme provides three different kinds of assistance. There are a total of 35,000 places for first home buyers with as little as 5 per cent deposit, with a further allocation of 10,000 places for market entrants in regional areas. There is also an allocation of 5,000 places for single parents and single guardians with as little as a 2 per cent deposit, (even if they’ve previously owned a property).

If you haven’t heard of it before, the Home Guarantee Scheme is administered by Housing Australia on behalf of the Australian Government and works with a range of participating lenders to facilitate loans for buyers who do not have the traditional 20 per cent deposit. Housing Australia then provides a guarantee to the lender of up to 15 or 18 per cent, which means that the borrower is not required to take out Lenders Mortgage insurance.

It's worth keeping in mind that these measures are separate from assistance measures from the State Government, such as the First Home Owners Grant.

I would urge you, if you think that you or someone you know could qualify for this assistance, to take the time to explore all the details of this scheme, including eligibility and property value limits. You’ll find them on the Housing Australia website: https://www.housingaustralia.gov.au/support-buy-home

Of course, whether you qualify for this type of assistance or not, if you need any advice on purchasing your first home, our team would be more than happy to assist you. So don’t hesitate to give me or one of my team at Barry Plant Thomastown a call during the week on 9466 3233.

Cheers,

Con Constantinou

Barry Plant Thomastown