The federal government has announced it is expanding the criteria of the Home Guarantee Scheme in an attempt to address the housing affordability crisis.
The changes will see eligibility criteria expanded for the First Home Guarantee, the Regional First Home Buyer Guarantee, and the Family Home Guarantee.
The changes also mean permanent residents will be able to access the schemes.
Here are more details announced by the federal government on Sunday:
First Home Guarantee and Regional First Home Guarantee changes
While previously the First Home Guarantee and Regional First Home Guarantee schemes were restricted to married and single people, as well as those in defacto relationships, the government is relaxing those restrictions.
From July 1 this year, friends, siblings and other family members will be able to jointly apply for the First Home Guarantee and Regional First Home Guarantee.
These schemes will also be available to non-first home buyers who have not owned a property in the past 10 years.
For both the First Home Guarantee and Regional First Home Guarantee schemes, the federal government acts as guarantor on up to 15 per cent of a loan. This enables eligible home buyers to purchase a home with as little as a 5 per cent deposit without paying lenders mortgage insurance.
Family Home Guarantee changes
The criteria for Family Home Guarantee applicants will also be expanded beyond just single natural or adoptive parents with dependents.
This change means the guarantee will become available to eligible borrowers who are single legal guardians of children, such as aunts, uncles and grandparents.
Under the Family Home Guarantee, the federal government acts as guarantor on up to 18 per cent of a loan. This enables eligible home buyers to purchase a home with as little as a 2 per cent deposit without paying lenders mortgage insurance.
Permanent residents also eligible
The availability of all three guarantees will also be expanded to include permanent residents in addition to Australian citizens.
What does the government say about the changes?
In a statement announcing the changes released on Sunday, Housing Minister Julie Collins said the government was making the eligibility changes to reflect the changing make-up of Australian households.
"We know friends and family members are already teaming up to secure their own place to call home," Ms Collins said.
"Our actions will allow them to access vital assistance, just as couples have been able to previously."
The government says allowing non-first home owners who haven't owned a property for ten years to access the schemes will be beneficial to people who have fallen out of home ownership due to financial issues or relationship breakdowns.
How many of these guarantees are available?
Every year, 35,000 First Home Guarantees places are made available.
In addition, up until June 30, 2025, there will be 10,000 places available per year under the Regional First Home Buyer Guarantee and 5,000 places per year under the Family Home Guarantee.
How do I know if I am eligible?
The federal government's National Housing Finance and Investment Corporation (NHFIC) website features a short questionnaire that can help you see if you are eligible for one of the schemes.
