Home Guarantee Scheme Helps One in Three First Home Buyers

In the 2023–24 financial year, the federal government's Home Guarantee Scheme supported 43,800 first-time buyers, accounting for roughly one in three first home purchases. Housing Australia’s latest Trends and Insights report revealed that 88% of the scheme’s 50,000 available spots were taken, reflecting a 34.7% increase from the previous year.

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How the Home Guarantee Scheme Works

The scheme enables first home buyers to secure a loan with a deposit as low as 5%, without paying lenders’ mortgage insurance (LMI). The government guarantees part of the loan, making it easier for buyers to qualify for a mortgage and enter the market sooner.

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Rising Demand

The surge in uptake is driven by rising property prices and the need for smaller deposits. The Home Guarantee Scheme has proven a valuable tool in helping Australians achieve home ownership amidst affordability challenges.

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The Future of the Scheme

With demand growing, the scheme is likely to remain a key driver for first home purchases. As more buyers utilise this opportunity, its continued success suggests it could expand to meet future needs.

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Conclusion

For first-time buyers, the Home Guarantee Scheme offers a crucial lifeline, reducing financial barriers and providing a pathway to home ownership. If you’re considering buying your first home, this could be the right time to explore the benefits of the scheme.

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