Expansion of Australia's First Home Guarantee Scheme explained

A man smiling as he holds up keys to his new home. Credit: georgeclerk/Getty Images

SBS Punjabi

View Podcast Series

Get the SBS Audio app

Other ways to listen

From July 1, friends and family will be able to team up and buy a home as the definition of a "couple" will be changed from those who are married or in a de-facto relationship to "any two eligible individuals". Permanent residents will also be eligible to apply for any arm of the scheme, expanding its scope beyond Australian citizens. Here's what will be changing under the Home Guarantee Scheme from July 1 this year.

Key Points

The government has announced expanded eligibility criteria for the First Home Guarantee, Regional First Home Buyer Guarantee and Family Home Guarantee schemes.
Among the major changes is the alteration of the definition of a "couple" from meaning a marriage or de facto relationship to "any two eligible individuals - friends, siblings and other family members."
Also, those who haven't owned a property in the last 10 years will be allowed to access the First Home Guarantee scheme with a deposit as low as 5 per cent

To tackle the nation's housing affordability crisis, the Albanese Government has proposed changing the eligibility criteria for the First Home Guarantee, Regional First Home Buyer Guarantee, and Family Home Guarantee schemes.

From July 1, the First Home Guarantee and Regional First Home Buyer Guarantee will be available to any two borrowers jointly applying in addition to spouses or de facto couples and also non-first home buyers who have not owned a home in Australia for a minimum of 10 years.

Budget 2023-24: Impact on skilled migrants, international students and tourists

To delve further into the details of the changes and how they affect the community, SBS Punjabi spoke to Melbourne-based mortgage broker and financial expert Niti Bhargava.

Melbourne based mortgage broker Niti Bhargawa at SBS Studios, Melbourne.

"Under these amendments, it will be easier for potential millions of Australians to buy their first home with as low as a 5 per cent deposit and no Lenders Mortgage Insurance (LMI)," she said.

"If an Australian hasn't owned a property in the last decade, they can now access the First Home Guarantee scheme. Before, the policy was available only to those who had never owned a property."

With the announcement of the 2023 Federal budget, from July 1, friends and family will be able to team up and buy a home as the definition of a "couple" will be changed from those who are married or in a relationship to "friends, siblings or any other family members".

Listen to this detailed interview in Punjabi to learn about the eligibility requirements, how the First Home Guarantee Scheme will work, who can apply and things to consider before applying, including price limits, wage thresholds and places available.

LISTEN TO