In Australia’s property market, first-home buyers often find themselves navigating a challenging and competitive environment. Recognising the need for supportive measures, the Federal Government has stepped in with the Housing Guarantee Scheme (HGS), aiming to alleviate some of the pressures faced by those taking their first steps onto the property ladder. According to a report from Housing Australia, approximately one in three first-time home buyers in the 2022-23 financial year took advantage of the federal assistance provided by the HGS through its diverse range of programmes.
Dissecting the Housing Guarantee Scheme
The HGS is comprised of three distinct assistance programmes, each tailored to meet the needs of specific demographics among first-home buyers. By understanding these programmes and their offerings, Western Australian first home buyers can make informed decisions about their home-buying journey.
First Home Guarantee
The First Home Guarantee programme is primarily targeted at home buyers in the 30-34 age bracket. Participants typically have a household income of $76,000 and purchase properties averaging around $459,000. This programme is designed to lessen the barrier of a hefty deposit requirement, giving aspiring property owners a more accessible pathway to home ownership.
Regional First Home Buyer Guarantee
For those aspiring to settle in regional areas, the Regional First Home Buyer Guarantee offers distinct advantages. This programme caters to buyers aged 25-29, with an income averaging $71,000, and facilitates the purchase of homes at a median price of $389,000. Recognising the unique circumstances and opportunities associated with regional living, this guarantee supports young Australians in pursuing homeownership outside metropolitan areas.
Family Home Guarantee
The Family Home Guarantee is an initiative tailored for single parents, offering essential support to this uniquely challenging demographic. Serving participants aged 35-39, with average incomes of $70,000, it assists in purchasing homes worth approximately $422,000. By enabling single parents to achieve home ownership with a reduced deposit, the programme aims to provide stability and security for families across the nation.
The Role of Housing Australia
Recently, the establishment of Housing Australia has marked a pivotal shift in the governance of housing support initiatives. As the successor to the National Housing Finance and Investment Corporation, Housing Australia now oversees pivotal programmes designed to bolster housing infrastructure and accessibility.
Housing Australia administers the HGS, ensuring the continued delivery of its assistance programmes. Additionally, the organisation has assumed control over the National Housing Infrastructure Facility, a fund dedicated to providing loans and grants aimed at unlocking new housing supply. This dual responsibility positions Housing Australia at the forefront of tackling Australia’s housing challenges, ensuring that supportive infrastructure and financial aid go hand in hand.
At Peel Finance Brokers, we understand the intricacies of buying your first home and navigating government schemes like the HGS. Our expertise is your advantage, helping you identify the assistance programmes that align with your unique situation. Let us guide you through the home-buying process with confidence. Contact us today to start your journey toward a new home.
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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.