Frydenberg flags middle class sweetener for aspiring homeowners

By Melissa Coade

March 29, 2022

Josh Frydenberg
Treasurer Josh Frydenberg. (AAP Image/Mick Tsikas)

The federal government will extend the home guarantee scheme as part of its 2022-23 federal budget, with scope for people to participate in the scheme even if they have owned a home before but want to buy in regional Australia. 

Tuesday’s budget announcement means up to 50,000 places under the home guarantee scheme will be made available each year. 

“The home guarantee scheme ensures part of an eligible buyer’s home loan is guaranteed by the government, enabling Australians to buy a home sooner with a smaller deposit and without needing to pay lenders mortgage insurance,” the treasurer said in a statement.

According to the government, a high number of women (52% of guarantees) and front-line workers have joined the scheme – one in five guarantees issued to essential workers, almost 35% of whom were nurses and 34% teachers. 

Women comprise 41% of the market average for homeownership; 52% of the government guarantees went to women. 

From 1 July this year, the government is making 35,000 guarantees available to eligible first homebuyers. This is up from the current 10,000 guarantees a year to support people’s purchase of a new or existing home with a deposit as low as 5%.

The government will support another 10,000 guarantees under the regional component of the scheme from 1 October 2022 to 30 June 2025 for the purchase or construction of a new home in regional areas. Once enabling legislation is passed, eligible people who can participate in this component will include people who have previously owned a home and permanent residents. 

The announcement also includes an extra 5,000 guarantees for the family home guarantee, a specifically targeted scheme for single-parent families. Under the scheme, eligible single parents with children are supported in the purchase of their first home or to re-enter the housing market with a deposit of as little as 2%.

The government said single mothers had taken up the majority (85%) of family home guarantees.

In another obvious hint at the nearby election, the treasurer said only prime minister Scott Morrison’s government was delivering on support packages to help Australians achieve ‘the dream’ of home ownership.

“With the expansion of the home guarantee scheme, combined with HomeBuilder, the First Home Super Saver Scheme, and the work of the National Housing Finance and Investment Corporation, only the [Coalition] is helping more Australians realise the dream of owning their own home,” Frydenberg said.


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