Access to Home Guarantee Scheme expanded to friends and siblings

From 1 July 2023, access to the Government’s Home Guarantee Scheme will be expanded to joint applications from “friends, siblings, and other family members” and to those who have not owned a home for at least 10 years.

The eligibility criteria for access to the First Home Guarantee Scheme and Regional First Home Buyers Scheme will be expanded. From 1 July 2023, the schemes will no longer be limited to individuals and couples who are married or in de facto relationships, but will also include eligible friends, siblings, and other family members for joint applications. In addition, the requirement for the applicants to be Australian citizens at the time they enter the loan has been extended to include permanent residents.

The schemes guarantee part of a first homeowner’s home loan enabling them to purchase a home with as little as 5% deposit without paying Lenders Mortgage Insurance. Guarantees are capped at 15% of the value of the property. Thirty five thousand places are available for the First Home Guarantee Scheme each financial year. From 1 October2022 there will be ten thousand places available each financial year until 30 June 2025for the Regional First Home Buyers Scheme.

Eligibility to the Family Home Guarantee will also be extended. From 1 July 2025, the scheme will no longer be restricted to single parents with at least one dependant natural or adopted child, but will also be available to borrowers who are single legal guardians of dependent children such as aunts, uncles and grandparents.

The Family Home Guarantee guarantees the home loan of an eligible single parent with at least one dependent child enabling them to purchase a home with as little as 2%deposit without paying Lenders Mortgage Insurance. The guarantee is capped at 15% of the value of the property. Five thousand places are available to the scheme each year to30 June 2025.

Scheme	Current eligibility	From 1 July 2023
First Home Guarantee – guarantees part of a first home owner’s home loan enabling them to purchase a home with as little as 5% deposit without paying Lenders Mortgage Insurance. Guarantee capped at 15% of the value of the property. 35,000 places are available to the scheme per year.	Applying as an individual or couple (married / de facto) First home buyers who have not previously owned, or had an interest in, a property in Australia. An Australian citizen(s) at the time they enter into 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	Friends, siblings, and other family members will be eligible for joint applications not just an individual or couple (married de facto) First home buyers and non-first home buyers who haven’t owned a property in Australia in the last ten years Australian citizens and permanent residents at the time they enter the loan All other criteria remain the same
Regional First Home Buyer Guarantee - An extension of the First Home Guarantee applicable to regional areas only 10,000 places are available to the scheme each year to 30 June 2025.	As above for the First Home Guarantee plus the borrower must have lived in the regional area (or adjacent) they are purchasing in for the preceding 12-month period to the date they execute the home loan agreement.	As above for the First Home Guarantee plus the regional area eligibility requirement.
Family Home Guarantee – guarantees the home loan of an eligible single parent with at least one dependent child enabling them to purchase a home with as little as 2% deposit without paying Lenders Mortgage Insurance. Guarantee capped at 15% of the value of the property. 5,000 places are available to the scheme each year to 30 June 2025.	Applying as an individual A single parent with at least one dependent child (natural or adopted) An Australian citizen at the time they enter into the loan At least 18 years of age Be earning no more than $125,000 per year Intending to be owner-occupier of the purchased property Not currently a property owner	​A single parent with at least one dependent child including legal guardians of children such as aunts, uncles and grandparents Australian citizens and permanent residents at the time they enter into the loan