How you can buy your first home in 2023

In 2022, the Australian Government introduced the Regional Home Guarantee Scheme, which promises to create more opportunities for those looking to purchase a property from country to coast.

There are a variety of Government schemes that first home buyers can apply for to help put home ownership within reach. In fact, according to a survey conducted by Great Southern Bank, 72 per cent of budding first home buyers are hoping to use Government support in 2023.

Potential first homeowners should investigate all available schemes and support in order to make intelligent and calculated decisions. However, there are some changes on the horizon for home loan deposit schemes which means that it is crucial that those contemplating taking advantage of Government support do their due diligence and understand the parameters of such grants. Let us take you through the basics:

Home Guarantee Scheme

The Home Guarantee Scheme is administered by the National Housing and Investment Corporation and exists to assist eligible property buyers get into the market sooner. This particular scheme includes the First Home Guarantee, the Regional First Home Buyer Guarantee and the Family Home Guarantee.

First Home Guarantee

The First Home Guarantee is a Federal Government initiative that allows first home buyers to purchase a new or existing property with as little as a 5 per cent deposit without the need to pay lenders mortgage insurance. 35,000 places are available annually to allow first time buyers the chance to purchase property sooner.

Regional First Home Buyer Guarantee

If you’re already living in a regional area, you might be eligible for the newest addition to the Home Guarantee Scheme. The Regional First Home Buyer Guarantee allows eligible first home buyers who have lived in a regional area for the past 12 months to purchase a property with as little as 5 per cent deposit on a home in that region or a neighbouring regional area. There are 10,000 places available each fiscal year and this can be used in collaboration with other Government grants you are eligible for.

Family Home Guarantee

Another Government initiative in the Home Guarantee Scheme’s repertoire is the Family Home Guarantee. The FHG enables eligible single parents with at least one dependent child to purchase a home with a deposit that is as little as 2 per cent. Allocations are limited to 5,000 per year until 2025, so getting on top of requirements for this one is essential.

There are additional first home buyer grants available in each state or territory across Australia. The most well-known the once-off support from the state government to first-home buyers purchasing a newly built or never lived in property. There are also various commissions available under each state government that provide support to first home buyers paying stamp duty. It’s important to remember that each initiative has its own set of criteria and eligibility which can be affected by your age, income, residency, goals and the current state of the property market.

Now that we’ve given you a brief overview of the Home Guarantee Scheme and the initiatives currently available, it’s time for you to go and speak with a trusted Mortgage Broker or Financial Advisor to discuss your eligibility and to set a purchasing plan in place. You might also find it helpful to visit the National Housing Finance and Investment website here.

If you want to see what homes are currently available to purchase on the Sunshine Coast, you can look at our Code Home listings here.