Government promotes homeownership in latest budget

The federal government, in its recent budget, announced three measures to make it easier for Australians to enter the market.

First, the government introduced the Family Home Guarantee, which is aimed at single parents with dependents. The government will guarantee 10,000 loans over the next four years, so eligible single parents can buy a property with a deposit of just 2%. The Family Home Guarantee is open to both first home buyers and previous owner-occupiers.

Second, the government has expanded the First Home Loan Deposit Scheme (New Homes), providing an additional 10,000 places in 2021-22. Eligible first home buyers who want to build or buy a new home will be able to do so with just a 5% deposit.

Third, the government made it easier for people to save for their first home, by increasing the amount of voluntary contributions that can be released under the First Home Super Saver Scheme, from $30,000 to $50,000.