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Government Gives First Home Buyers A Second Chance


In a recent announcement, the Federal Government will soon roll over more than 4,500 unused guarantees for first home buyers from the previous financial year. 

The First Home Loan Deposit Scheme (FHLDS) was first released on January 1, 2020, and is an Australian Government initiative to support eligible first home buyers to build or purchase a first home sooner. While buyers are usually required to save a 20% deposit or otherwise pay Lenders Mortgage Insurance, under the FHLDS, eligible first home buyers can purchase or build a new home with a deposit of as little as 5%, with the government actually guaranteeing the remaining amount.

In essence, the FHLDS functions in a similar fashion to a traditional family guarantor loan, except it’s the government that fronts up to vouch for you, and in turn shoulder the risk. While the scheme doesn’t offer a cash payment, the good news is that you can use it in conjunction with any other government grants, schemes, concessions and waivers you qualify for, with the aim being to get Australians into their first home faster. 

Riding on the back of the success of the First Home Loan Deposit Scheme, the federal government also launched another initiative in July 2021  known as the Family Home Guarantee. Aimed at getting single parents into their first home, eligible participants will be able to build or purchase an existing home with a deposit of as little as 2%, and isn’t restricted to first home buyers. 

While both schemes were previously capped at 10,000 applications per initiative, in a joint announcement on Thursday 9 December 2021, Prime Minister Scott Morrison and Minister for Housing Michael Sukkar have declared the government will reissue 4,651 unused grants for first home buyers to be used in the new 2021 financial year.

What The Changes Mean For First Home Buyers

While many of us are all too aware of the disruptions caused by the pandemic in our day to day lives, it’s also played an enormous role in the unprecedented growth currently seen in Australia’s property market. As such, the Prime Minister has stated that the intention of rolling over the extra places in the federal initiatives  is to help first home buyers who hadn’t had an opportunity to enter the market this year because of the above factors and more. 

“The pandemic and lockdowns have interrupted the plans of many first home buyers this year, so this is about ensuring that we give thousands more families the opportunity they need. We want to help Australians into their first home, or a home that they’ve had built for them and their family, and with our support first home buyers are at their highest level in nearly fifteen years.”

According to figures reported by Minister For Housing Michael Sukkar, federal grants and initiatives such as HomeBuiler, the First Home Super Saver Scheme, the First Home Loan Deposit Scheme and the Family Home Guarantee have together helped more than 300,000 Australians purchase their first property since their inception. 

Interestingly, just over half of the FHLDS went to women (52%), with one in five applicants also identifying as being an essential worker. Young people also took out a large slice of the program, with 58% of recipients listing their age as under 30. The move by the Morrison government has been welcomed by the big banks, who have acknowledged the ongoing issues surrounding affordability challenges with rising house prices, especially when considering that the FHLDS is getting people in their first homes 4 to 4.5 years faster than what they would have been able to without it. 

However, not all Australian lending providers are participating in the First Home Loan Deposit Scheme, and the ones that are still have wildly different loan options in terms of features, fees and interest rates. As such, the services of a reputable mortgage broker have arguably never been more helpful to determine the best fit for you. 

How To Streamline Your First Property Purchase  

The big attraction of buying your own home is just that – it’s yours, once you’ve paid back the banks of course. However, first home buyers don’t have it easy, which is why we’ve compiled our very own in depth First Home Buyers Guide. This resource is completely free to download, and can be a game changer when it comes to ensuring that you’re up to speed on how to get into your first home faster. 

With a background in banking, finance, business development and project management, there’s no better advocate to have on your team than Nikki Berzin. As a fully qualified mortgage broker and director of Cherry Lending & Finance, Nikki is passionate about all things finance, and empowering her clients with the tools to hit their property goals is what she does best, and another example of this is the free to use Savings Goal Calculator found on the Cherry Lending & Finance website. 

If you’re looking to get into your first home, purchase an investment property or even want to look at your options for refinancing, the first step is starting the conversation. Get in touch with Nikki today, or call her directly on 0427 374 155 to bring your mortgage dreams to life.

Disclaimer: Your full financial needs and requirements need to be assessed prior to any offer or acceptance of a loan product.  Subject to lenders terms and conditions, fees and charges and eligibility apply.

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