More buyers now eligible for federal housing incentives

The federal government has expanded its support to first home buyers and single parents and has also released a new program for regional buyers.

The First Home Loan Deposit Scheme and New Home Guarantee, which currently support a combined 20,000 first home buyers per financial year, will now support 35,000 per year from July 1. The price caps for these programs, which differ from area to area, will also be increased, by anywhere from $50,000 to $250,000. Under these programs, eligible first home buyers can purchase properties with just a 5% deposit, without needing to pay lender’s mortgage insurance.

The Family Home Guarantee, which currently supports 10,000 single parents over four years, will now support 5,000 per year from July 1. Under this program, single parents can buy properties with just a 2% deposit.

The new Regional Home Guarantee will help 10,000 people per financial year (starting October 1) to buy a property in a regional area with just a 5% deposit. This program is open to first home buyers, people who have not owned a home for at least five years and permanent residents.