2022/23 Budget | Housing

In welcome news for first-time buyers, the Government has extended the Home Guarantee scheme by three years. There is an additional 50,000 places between now and 2025. And a further 35,000 guaranteed after 2025.

What does this mean?

Starting the first of July 2022, first-time buyers can purchase a home with just a 5.0% deposit. This is for new or existing homes. The initial allocation is for 35,000 buyers.

There is also a new Regional Home Guarantee Scheme that comes with 10,000 places each year. This is for permanent residents, whether first-time buyers or not, to either build or purchase in regional Australia. This scheme kicks off in October of 2022 and will run through 2025.

The Family Home Guarantee extension was specifically designed for single-parent homes to either re-enter the market or, purchase for the first time with a 2% deposit.

The cost over a four year period weighs in at $8.6 million, while the seven-year projection from 2026 reaches $138.7 million. An additional $20 million will be injected from 2033.

There is also $2 billion allocated to fund the NHFIC Affordable Bond Aggregator. This will guarantee loans to developers wishing to develop affordable housing. There aren’t any outright additional funds for new affordable housing.

Experts believe there is a home shortage of some 200,000 across Australia. So, the cash injection isn’t much in terms of addressing the issue. Does the 2022 budget address the housing crisis in a meaningful way that will make real change? Only time will tell.

*Disclaimer: This article is for general information only and should not be relied on as advice. You should consider your personal situation and seek advice that is specific to your circumstances before making any decisions based on this information.  If there are any issues you would like us to discuss with us arising from this article, please contact us*

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