The federal government’s Home Guarantee Scheme (HGS) is proving to be a significant boost for first home buyers. According to a new report from Housing Australia, around one in three first home buyers who entered the market during the 2023-24 financial year used the scheme to secure their home.
The HGS allows eligible first-time buyers, as well as those who haven’t owned property in the last 10 years, to purchase with just a 5% deposit while avoiding the added cost of lender’s mortgage insurance. This opportunity is available only for owner-occupiers and is open to individuals earning less than $125,000 annually or couples with a combined income under $200,000. Additional eligibility criteria also apply.
The report highlighted some key figures for participants in the scheme. In capital cities, the median income for single buyers was $85,000, while joint buyers earned $134,000. Their median property purchase prices were $482,000 and $624,000, respectively. For those in regional areas, single buyers had a median income of $78,000 and couples $126,000, with property prices of $390,000 for singles and $520,000 for couples.
This initiative has opened doors for many Australians, helping them achieve their homeownership dreams even amidst rising property prices.
