New Places and Price Caps under Home Guarantee Scheme
Johnathon O'Sullivan • July 21, 2022

From Friday, July 1, 40,000 new places have become available under the Federal Government’s Home Guarantee Scheme to help Australians buy their home.


The Home Guarantee Scheme is made up of the First Home Guarantee - previously known as the First Home Loan Deposit Scheme - and the Family Home Guarantee.


The aim of this scheme is to allow first home buyers to buy a property with a deposit as small as 5 per cent, and eligible single parents with a deposit as small as 2 per cent. The Government then guarantees the remaining amount - 15 and 18 per cent of the property price, respectively - avoiding the need for Lenders Mortgage Insurance.


The number of places available for the First Home Guarantee has been increased to 35,000 per financial year, while the Family Home Guarantee will have an annual allocation of 5000 places, starting July 1 2022 until June 30 2025.


First Home Guarantee


The First Home Guarantee was created as an Australian Government initiative to support eligible first home buyers to purchase a home sooner.

To be eligible for this grant, applicants must be:

  • Applying as an individual or couple (married / de facto)
  • An Australian citizen(s) at the time they enter the loan
  • At least 18 years of age
  • Earning up to $125,000 for individuals or $200,000 for couples, as shown on the Notice of Assessment (issued by the Australian Taxation Office)
  • Intending to be owner-occupiers of the purchased property
  • First home buyers who have not previously owned, or had an interest in, a property in Australia


The Family Home Guarantee


The Family Home Guarantee has been developed to specifically help single parents buy a family home.

You can use this scheme to either build a new home, or buy an existing one. Both first home owners and previous home owners can apply - however, you can’t use it to buy an investment property or if you currently own a home.

To be eligible for the Family Home Guarantee you must:

  • Be an Australia Citizen aged 18 years or over
  • Be a single parent with at least one dependant living with you
  • Have earned $125,000 or less last financial year The single parent applying for this grant must also be the only name listed on the loan and the certificate of title.


New Price Caps


High house prices throughout our cities and regions has made it extremely difficult for first home buyers and single parents to enter the housing market. By increasing the highest price a person can pay for a home within the Home Owners Guarantee, the Government hopes to make this easier.

See below the new price caps for each state and territory.


Take Advantage of Slowing Markets


This time round, home buyers not only have more places available where they can enter the market thanks to lower deposit requirements, but higher price caps means more locations across the country have been unlocked. This, compounded with slowing markets, gives home buyers the perfect incentive to buy. 


Get in touch


If you are thinking about taking advantage of the Home Owners Guarantee and would like to know more, get in touch today. Our home loans team are extremely experienced and would love to help you along your path to home ownership.

December 1, 2022
Whether you’re planning on investing in rural or commercial property, buying an asset for your business, or purchasing your dream home, you will need to consider your lending solutions. While your first instinct could be to talk to your bank about a loan, there is another option that may save you time, effort, and ultimately money - that you won’t be able to get from your bank. Experts in banking and finance, Central West Finance Solutions will help you take the legwork, guesswork and stress out of securing a loan. Independent from a bank, we have access to a broad range of loan products, making us your new best (financial) friend. Choice of Lenders Finding the right fit loan is just as important as finding the perfect property. In the Australian market, there are now hundreds of lenders available and often, it can be hard to work out which one is right for you. 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December 1, 2022
We all know the song - ‘Give me a home among the gumtrees with lots of plum trees…’ The great Australian dream of owning a home has been part of our country’s identity for centuries. Of course, it was a much more affordable dream back then!  Saving money in today’s inflated world is no easy feat. Often daunting and oh so tedious, it’s understandable that young people feel overwhelmed by the thought of saving to buy their first home. However, we are here to tell you it’s not impossible! Just like anything, making a habit of saving by regularly doing it will help you stay on the right financial track and reduce the overwhelm. Your dreams are important to us and we want to make them come true. So here are 5 sustainable and realistic tips you can use to achieve your goals of buying your first home. Understanding your finances Assessing and understanding your financial status is vital to setting yourself achievable saving goals. In doing this, it is important that you have a solid understanding of the basics - like your net worth, your debts, interest rates and monthly expenses. Don’t let the jargon put you off. Finances seem like an intimidating area, however, with a little research and education, they really aren’t that scary! The best thing to do would be to speak to someone with knowledge in the field and start improving your financial literacy. Make record of your spending Once you understand what you are looking at, it’s time to start making records of your spending. Sit down with your bank statements and start the month with a certain amount of money both in your wallet and your bank account. At the end of the month, take note of everything you spent money on - each payment you made - and how much money you have left over. Completely go through your finances and analyse your spending. Note where your money is going and what you can cut back on. It’s also a good idea to list all major repayments that come up regularly. For example, car registration, health insurance, electricity bills etc. Make note of when they are due and add up how much you need to put aside for these. Based on all this information, set yourself a reasonable and realistic monthly budget. This should include a portion of your income going into a savings account each time you get paid. Set bite-sized goals Once you’ve decided an amount you can comfortably live off, based on your income and spendings, decide a reasonable goal for your deposit - then break it down. If you say you want a deposit of $40,000 it is going to seem an impossible ask. But if you set incremental, bite-sized goals, it can be done. Do this by setting monthly, biannually and yearly goals. As a first home owner it may be to put $1000 into your savings each month, pay off your debts within a year etc. As a first home buyer you’re currently exempt from stamp duty, but you need to remember you still need to put money aside for things like solicitors fees and pest and building inspections. Something else that is very important when considering your budget and goals, is that the deposit is not the only thing you need to consider. You also need to think about repayments - how much can you afford to pay each fortnight? What kind of lifestyle do you want? Use your budget to decide on the maximum amount you can afford to pay so you don’t find yourself overstretched later on. **Try pay off any debts ** Debt can sometimes affect how much someone is willing to lend you. It will be a big load off your chest if you can rid yourself of this before taking on a mortgage. Once it is paid off you are already used to not having that money. Try and put that money towards savings if you can. While this is definitely not essential, if your debt is under control, it will be a big help in the long run! Find an institution you can trust Taking out your first home loan is a daunting step into adulthood, but it can also be really exciting! Finding an institution you can trust is a huge part of this process. Here at Central West Finance Solutions we have credentials with numerous lenders via our aggregator Connective so we are able to source you a loan from a lender you know and trust. Are you ready to buy your first home? Get in touch today and we can help you get started on the process.
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