Important Changes To First Home Guarantee Scheme

For many people, the dream of owning their own home can seem out of reach. Rising property prices and stricter lending criteria can make it challenging to get a foothold on the property ladder. However, the Australian Government has recently made changes to the First Home Guarantee, which could make homeownership a possibility for more people.

The First Home Guarantee is a scheme that helps first-time buyers get onto the property ladder by providing a guarantee to approved lenders that covers a portion of the deposit required to purchase a home. This scheme has been in place for a few years, but the recent changes have made it more accessible than ever.

One of the most significant changes to the First Home Guarantee is that it now allows people who haven't owned property in the last ten years to be eligible. Previously, the scheme was only available to those who had never owned property. This change means that more people, including those who may have owned property in the past, but sold it due to circumstances beyond their control, can now access the scheme.

The increase in property prices over the past decade has made it challenging for many people to save for a deposit, particularly those who have had to deal with unexpected expenses or job losses. The First Home Guarantee can help bridge the gap and make it easier for people to get onto the property ladder.

Another significant change to the scheme is the increase in the price cap for eligible properties. Previously, the price cap was set at $600,000 in most regions, with higher caps for more expensive areas. However, this cap has been increased to $700,000 in most regions, and higher caps have also been introduced. This change means that more properties will be eligible for the First Home Guarantee, allowing buyers to consider a broader range of options.

Previously, the scheme was only available to individuals or couples who were purchasing their first home. However, the recent changes now allow up to four people to purchase a property together, providing they are all first home buyers. This means that siblings or friends can now pool their resources to enter the property market, which could make homeownership more accessible for those who may not have been able to afford it on their own.

The changes to the First Home Guarantee are positive news for anyone looking to buy their first home. They offer more flexibility and options to buyers and increase the chances of securing a loan. However, it's important to note that the scheme is not a guarantee of loan approval. Buyers will still need to meet the lender's eligibility criteria and provide evidence of their ability to repay the loan.

At our law firm, we understand that the process of buying your first home can be daunting. That's why we offer expert legal advice to guide you through the process and ensure that you understand your rights and obligations. Our team of experienced lawyers can help you navigate the legal aspects of buying a property, including reviewing contracts, arranging property inspections, and providing guidance on stamp duty and other fees.

If you're considering buying your first home, contact us to find out more about how the changes to the First Home Guarantee can help you achieve your goal. Our team is here to help you every step of the way.