The huge First Home Guarantee changes that come in from October 1

The Government’s changes to the First Home Guarantee will from today open the door to a huge number of suburbs for first homebuyers who have been struggling to get into the market.

The scheme gives first-timers access to five per cent deposits from today, instead of next year as it had originally planned.

Through the expanded scheme, the Government will guarantee a portion of a first homebuyer’s loan so eligible buyers can purchase with a significantly lower deposit and not pay Lenders Mortgage Insurance.

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Eligible first homebuyers must be Australian citizens or permanent residents, at least 18 years old and the property purchased must be their primary residence.

There will be no limit to the number of places available on the scheme, however property prices in SA will be capped to $900,000 in metropolitan Adelaide – up from $600,000 under the existing scheme – and $500,000 in rural SA – up from $450,000.

Prime Minister Anthony Albanese Photo by Alberto Pezzali – WPA Pool/Getty Images

Prime Minister Anthony Albanese said at the time of the announcement he wanted to help young people and first home buyers achieve the dream of home ownership sooner.

“Bringing the start date of our 5 per cent deposit scheme forward will do just that,” he said.

“Labor was re-elected with a clear mandate to bring down the deposit hurdle for first home buyers, and we’re delivering.”

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Hickinbotham Group Managing Director, Michael Hickinbotham said buying a first home just became a whole lot easier.

“Our customers have been waiting for these changes to take effect, giving them a faster, simpler and smoother path to home ownership,” Mr Hickinbotham said.

“When combined with other grants and exemptions available to first home buyers, the impact is significant.

The Hickinbotham Group’s Michael Hickinbotham. Supplied

“Home buyers now have a broader range of properties to choose from, can shave years off the time it takes to save for a deposit and can avoid spending tens of thousands of dollars on Lenders Mortgage Insurance.

“This is welcome relief for home buyers.”

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Small business owners Dylan Woolford, 25, and Bella Scott, 24, are planning to build with Hickinbotham at Munno Para Downs.

The couple, who have grown up in rental properties, look forward to being the first members of their respective families to achieve home ownership.

Photo: Dylan Woolford and Bella Scott are building with Hickinbotham at Munno Para Downs. Picture: Tim Joy.

“The expanded First Home Guarantee has made more properties and home designs available to us, rather than being locked into a smaller property,” Mr Woolford said.

“It’s given us independence to own our home and confidence to grow our family.”

For more information visit www.housingaustralia.gov.au

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