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Applications open for 40,000 to go from renting to buying a home

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QLD_CP_SPORT_HOCKEY_01APR22

Home guarantee scheme property price caps have been increased by $100,000 across all major cities including Brisbane. Picture: Brendan Radke


Forty thousand housing grants opened up today to help more Aussies go from renting to buying their own home – with property price caps also raised by $100k in all major cities.

Federal Housing Minister Julie Collins this morning confirmed 35,000 places would open up from today for first home buyers with a deposit of as little as 5 per cent (first home guarantee) – up from 10,000 a year previously – and there would be 5,000 places for single parents with dependants buying with a deposit as little as 2 per cent (family home guarantee).

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PRIME MINISTER

Minister for Housing Julie Collins with Prime Minister Anthony Albanese and apprentices Lukas Bird and Izaiah Meni from St Joseph Affordable Homes on a recent tour. Picture: Nikki Davis-Jones


The number of people assisted with homebuying could rise to 50,000 by year end, with a further 10,000 places expected to become available when legislation is approved for a specific grant for FHBs in the regions.

“The Albanese Government will also provide targeted support to Australians living in regional areas though a new Regional First Home Buyer Support Scheme,” Ms Collins said.

“This new scheme will join the Home Guarantee Scheme and deliver on a commitment the Albanese Government made before the election.”

A Qld build that saw NHFIC applicants Kirby and Andrew (surname withheld) use the First Home Loan Deposit Scheme (New Homes) to get into their own home. Picture: NHFIC


July 1 also sees the start of higher property price caps across the scheme, with every capital city rising by $100,000 and the entire Australian Capital Territory up by $250,000 with the whole of Northern Territory up by $100,000. (See list below).

“From today updated property price caps will also apply,” Ms Collins said, “reflecting recent increases in property prices and to make more properties available for purchase using the Scheme.”

The National Housing Finance and Investment Corporation, which administers federal home ownership grant schemes, said more than 61,000 people had been helped so far via the scheme to either buy or build a home.

NHFIC chief executive Nathan Dal Bon said the July 1 increase was welcomed to help take more Aussies from renting to getting their own homes.

“As an organisation, we support Australians across the housing spectrum from those renting in community housing, through to Australians with the goal of homeownership. We expect many more Australians to be able to bring forward buying a home under the expanded Scheme.”

Nathan Dal Bon

Nathan Dal Bon, chief executive of the Federal Government’s National Housing and Investment Corporation (NHFIC). Picture: Britta Campion/The Australian


NHFIC has also expanded the panel of lenders that buyers can choose from to 32 this year.

Big Four bank NAB has released data showing it financed 63 per cent of houses bought via in the scheme in the past six months.

“Of the 63 per cent of First Home Guarantee solo borrowers, 59 per cent were female and 41 per cent were male,” a NAB statement said, with one in five under 30 (21 per cent).

NAB home ownership executive, Andy Kerr, said: “People going at it alone shouldn’t be disadvantaged and we are seeing the scheme help them buy a property”.

“With a backdrop of house price growth slowing and in Sydney and Melbourne where it is going backwards, there is some relief in sight for first home buyers.”

Mr Kerr said NAB’s regional purchases in the scheme were up two per cent compared to the same time last year.

UPDATED: PROPERTY PRICE CAPS:

(*The price caps apply from July 1 for those purchasing via the federal home guarantee scheme)

Queensland – capital city and regional centre $700,000 ($600,000 previously)

Queensland – other $550,000 ($450,000 previously)

New South Wales – capital city and regional centre $900,000 ($800,000 previously

New South Wales – other $750,000 ($600,000 previously)

Victoria – capital city and regional centre $800,000 ($700,000 previously)

Victoria – other $650,000 ($500,000 previously)

Western Australia – capital city $600,000 ($500,000 previously)

Western Australia – other $450,000 ($400,000 previously)

South Australia – capital city $600,000 ($500,000 previously)

South Australia – other $450,000 ($350,000 previously)

Tasmania – capital city $600,000 ($500,000 previously)

Tasmania – other $450,000 ($400,000 previously)

Australian Capital Territory $750,000 ($500,000 previously)

Northern Territory $600,000 ($500,000 previously)

Jervis Bay Territory and Norfolk Island $550,000 ($550,000 previously)

Christmas Island and Cocos (Keeling) Islands $400,000 ($400,000 previously)

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