Overview of measures targeting home ownership, including the new Family Home Guarantee.
As part of the budget released earlier this month, the Treasury revealed that it would expand some of its existing schemes to help Australians buy residential property and launch a new measure that would help more single parents purchase family homes, as part of its budget for 2021-22.
While the majority of detail on the new and updated schemes is still to be revealed, here is an overview as well as some existing measures that will be expanded and/or extended.
One of the new measures is to help single parents purchase property.
Starting on 1 July 2021, the new guarantee aims to support divorced or separated parents with dependent children by enabling them to purchase a home sooner with a deposit of as little as 2 per cent. The Government will guarantee up to a maximum of 18 per cent of the property purchase price, allowing the applicant to get a loan without paying lender’s mortgage insurance.
Applicants must be Australian citizens, at least 18 years of age and have an annual taxable income of no more than $125,000. The program is expected to have property price caps like First Home Loan Deposit Scheme but not limited to first home buyers.
The new Family Home Guarantee, which will act in a similar way to the existing Government guarantee schemes, will provide 10,000 guarantees over four years.
The FHLDS (New Homes) Scheme (also known as the New Homes Guarantee) will be expanded for a second year, providing an additional 10,000 places in 2021-22.
First home buyers seeking to build a new home or purchase a newly built home will be able to do so with a deposit of as little as 5 per cent.
This is in addition to the 10,000 spots under the First Home Loan Deposit Scheme for purchasing established property.
First Home Super Saver Scheme
The Government has said it will also increase the maximum number of voluntary contributions that can be released under the First Home Super Saver Scheme from $30,000 to $50,000.
First Home Owner Grant
$10,000 grant to First Home Buyer Owner Occupiers when they purchase or build a brand new dwelling up to the value of $750,000
First Home Buyer Stamp Duty Relief
First Home Buyers qualify for nil stamp duty when acquiring a property up to $430,000 in value or vacant land up to $300,000. Reduced stamp duty available up to $530,000.
75% Stamp Duty Rebate
75% Stamp Duty Rebate available to purchasers of apartments or multi-tier scheme property off plan or under construction. Available until the end of October 2021.
Home buyer Assistance Account
Up to $2,000 rebate grant available for First Home Buyers purchasing their first established home up to $400,000. This is to cover any costs incurred in purchasing the home.
Government focus on recovery has been around the importance of owning your own home. The Federal and State Homebuilder & Building boost grants initiatives closed in April 2021.
For more information, or to see what your options are, speak to me and I will help navigate you through the process.