The Australian housing market can often look intimidating, particularly for first-home buyers. The ongoing increase in house prices and the massive upfront deposit often make the dream of owning a home seem unattainable. Fortunately, the Federal Home Guarantee Scheme (HGS) has come to the rescue of home buyers on modest incomes, allowing them to dive into the property market with significantly smaller deposits.
How the Home Guarantee Scheme Works: Making Homeownership Attainable
The HGS, initiated by the Australian Federal Government, allows first-home buyers to break into the property market with a deposit of just 5%, taking away the need for the traditionally hefty deposits. This federal initiative is targeted towards Australians on modest incomes, allowing a greater number of buyers to realise their homeownership dreams.
Key Findings: Decoding the Research Stats
The relevance and effectiveness of the HGS are affirmed in recent research conducted by the National Housing Finance and Investment Corporation. The findings reveal some insightful statistics:
- The annual average income of individual HGS participants was found to be $108,000, as opposed to $117,000 for the wider first-home buyer market.
- Since 2020, the average deposit paid by first-home buyers increased by a modest 3.4% (from $35,200 to $36,400) for HGS participants. In contrast, a sharp rise of 46.7% ($108,400 to $159,000) was reported in the broader first-home buyer market.
- The average loan amount for HGS buyers has risen by 4.7% since 2020, a figure significantly less than the 13.4% increase shown in the wider first-home buyer market.
The research even highlighted that the average HGS property has seen an equity gain of $82,000, enhancing the scheme’s appeal.
Eligibility and Application: Your Route to the Home Guarantee Scheme
Like all government initiatives, conditions apply to the HGS. Every potential homebuyer’s situation is different, and eligibility for the scheme boosts the hope of owning your first home.
Here at Peel Finance Brokers, we specialise in clarifying and simplifying the complexities of the financial world for our valued clients. We can guide you through the eligibility process and help you apply for a loan under the Federal Home Guarantee Scheme. Contact us today to take the first step towards owning your first home, handled with care and expertise.
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Dip. of Management (Deacon University)
Dip. of Finance/Mortgage Broking Mgt.
Assoc. Cert. of Business (Real Estate)
Assoc. of Mort. Ind. Assoc. of Aust. (AMIAA)
Terry Boag is the founder and CEO of Peel Finance Brokers and has been providing professional and loyal service to the Mandurah and southwest area for 25 years. With a long history of financial experience, Terry is reliable and dedicated to his clients, always ensuring the highest customer service and delivering strong lender relationships.