Navigating the world of home ownership can be daunting, especially for first-time buyers. However, there are a variety of government grants and schemes designed to assist you in this journey. Here’s a summary of the major ones as of 2023 that are applicable to Queensland residents.
Nationwide Government Schemes
Help to Buy Scheme
This is a shared equity scheme where the government contributes up to 40% of the property price for a new home and up to 30% for an existing one. There will be 10,000 places available for eligible Australians each year.
First Home Guarantee
This scheme allows eligible first-home buyers to purchase a new or existing home with a deposit of just 5%, without paying lenders mortgage insurance (LMI). The scheme now has 35,000 places each financial year, beginning from 1 July 2022.
Family Home Guarantee
This initiative helps eligible single parents with dependants purchase a family home sooner. Under the scheme, single parents can buy a home with just a 2% deposit without paying LMI. The Family Home Guarantee is available through the financial year 2025.
Regional First Home Buyer Support Scheme
Starting in January 2023, this scheme will potentially help 10,000 Australians a year who are living in regional areas buy their first home with at least a 5% deposit. First-home buyers can buy a home with a deposit as low as 5% of the property value and the government will guarantee the other 15%, allowing borrowers to avoid paying LMI.
First Home Super Saver Scheme
This scheme allows first-home buyers to save a deposit for their first home inside their super account, to take advantage of the concessional tax treatment. The government has increased the total amount of savings borrowers can release from super to make a deposit on a home from $30,000 to $50,000.
Home Guarantee Scheme Expands Eligibility For 2023-24
The federal government has announced changes to the Home Guarantee Scheme, which will greatly expand the number of people eligible to participate. From 1 July 2023, friends, siblings, and other groups of family members can jointly apply for the First Home Guarantee and Regional First Home Buyer Guarantee.
Non-first-home buyers who have not owned property during the last 10 years can also apply. Additionally, borrowers who are single legal guardians of children – such as their aunts, uncles, and grandparents – can apply for the Family Home Guarantee.
Conclusion
These schemes offer valuable assistance to first-home buyers, making it easier for them to own a home. To find out which schemes you qualify for, it’s recommended to consult with a mortgage broker or home loan expert.
Please note that eligibility criteria vary for each scheme, so it’s essential to do your research and understand all the details before you apply.
If you’re wondering about your borrowing options, why not get a Home Loan Health Check with Loan Market Rockhampton?
Good luck on your journey to home ownership!
