Federal Government Announces Extension To Home Guarantee Scheme

The federal government has announced the extension of the home guarantee scheme which will help millions of Aussies get into their first home. 

In the lead up to Tuesday’s federal budget, the government revealed that at least 50,000 places will be made available per year as part of the home guarantee scheme.

The adjustment to the scheme will allow first time home buyers to purchase a home using a substantially smaller deposit.

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There will be an extra 25,000 places available for first home buyers from July 1, with a total of 35,000 places available for eligible first homeowners.

Those eligible will be able to purchase a new or existing home with as little as five percent deposit. 

Additionally, there will be 10,000 places per year between October 1, 2022 and June 30, 2025 under the Regional Home Guarantee scheme to help home buyers, which will include second time home buyers, in purchasing a new home in regional locations. 

From July 1, 2022 until June 30, 2025, there will be 5,000 spots available under the Family Home Guarantee which will allow single parent families to purchase a home with a deposit of only two percent.

According to finance minister Simon Birmingham, a retirement income review found that owning a home was one of the largest contributors to security after retirement.

"So helping people to get into home ownership as soon as possible is one of the best things any government can do to provide economic security right throughout their life into retirement years," he said.

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