Government Schemes for Home Buyers in Australia

If you’re looking to buy your first home in Australia, the process can be exciting, terrifying, daunting, frustrating, and expensive all at once. Despite the cooling of Australia’s property market from its pandemic-induced peak, many first-home buyers are still finding it challenging to get onto the property ladder, especially with soaring interest rates and inflated prices. However, both federal and state governments have introduced various schemes, incentives, and fee waivers to assist eligible Australians in achieving their dream of home ownership faster. Here’s a rundown of the available schemes and their eligibility requirements:

The Home Guarantee Scheme (HGS):

The HGS is a federal government initiative designed to help Australians buy or build their first home. It is divided into three categories, offering assistance for buying a home with as little as a 2% deposit. Each scheme has specific eligibility criteria and price caps for eligible properties based on their location.

First Home Guarantee (FHBG):

The FHBG home buying scheme has been expanded to offer 35,000 more places each year, allowing first-home buyers to purchase eligible properties with a deposit as low as 5% and avoid lenders’ mortgage insurance (LMI). Eligibility criteria include being a first home buyer, meeting income requirements, being an Australian citizen or permanent resident, and buying a home within the corresponding price cap.

Regional First Home Buyer Guarantee (RFHBG):

This scheme provides 10,000 first-home buyer guarantees to regional Australians, helping them buy their first home in designated regional areas with a deposit as low as 5%. Similar eligibility criteria as FHBG apply, with an additional requirement of having lived in or adjacent to a regional area for the past 12 months.

Family Home Guarantee (FHG):

The FHG provides assistance specifically for single parents with at least one dependent child, allowing them to purchase a property with as little as a 2% deposit without paying LMI. Applicants must meet specific criteria, including having no current property ownership and earning less than a certain income threshold.