The Federal Government will continue to support aspiring home owners, with the expansion of the Home Guarantee Scheme locked in as part of the 2022‑23 Budget. 

The Home Guarantee Scheme ensures part of an eligible buyer's home loan is guaranteed by the Government, meaning Australians can buy a home sooner with a smaller deposit and without the need to pay lenders mortgage insurance (LMI). 

Three schemes, 50,000 places

Through the expanded Home Guarantee Scheme, 35,000 New Home Guarantees will be made each year up from the current 10,000 from 1 July 2022.

This will support eligible first home buyers to purchase a new or existing home with a deposit as low as 5%.

Ten thousand spots each year from 1 October 2022 to 30 June 2025 will be made under the 'Regional Home Guarantee'.

This will to support eligible home buyers, including non-first home buyers and permanent residents, to purchase or construct a new home in regional areas.

From 1 July 2022 to 30 June 2025, an extra 5,000 spots will be made available each year for the Family Home Guarantee initially announced in last year’s budget.

This scheme is targeted specifically to single parent families supports eligible single parents with children to buy their first home or to re-enter the housing market with a deposit of as little as 2%.

To be eligible for the scheme, homes must be valued at $700,000 or less in metropolitan areas or $500,000 in regional areas.

All three components of the scheme will be open to singles earning up to $125,000 and couples with a combined household income of $200,000.

Read more: What's in store in the upcoming Federal Budget? 

NAB Group Executive Personal Banking Rachel Slade said the schemes have helped thousands of Australians purchase a home earlier than they thought possible.

“Price growth has made it more challenging for many Australians to enter the housing market, which is why support measures such as these are so important," Ms Slade said. 

Included in the expansion is a new Regional Home Guarantee open to non-first home buyers, promoting new builds in regional areas.

rHIA Managing Director Graham Wolfe said 77% of Australians still believe owning their own home makes them financially secure, yet the deposit gap continues to be the biggest barrier to home ownership.

"The first home loan deposit scheme has clearly proven its value over the last three years, helping more than 30,000 households buy their first home," Mr Wolfe said. 

"The introduction of the Regional Home Guarantee has the potential to help these home buyers but also to boost home building in the regions."

Building a home? This table below features construction loans with some of the lowest interest rates on the market.

Update resultsUpdate
Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
6.43% p.a.
6.68% p.a.
$2,679
Interest-only
Variable
$0
$530
80%
  • Interest only during construction period
  • Offset sub-account available after completion
  • Unlimited additional repayments after completion
 Disclosure
6.44% p.a.
6.79% p.a.
$3,141
Principal & Interest
Variable
$395
$null
95%
6.64% p.a.
7.03% p.a.
$2,767
Interest-only
Variable
$null
$720
90%
6.64% p.a.
7.10% p.a.
$2,767
Interest-only
Variable
$0
$530
80%
6.78% p.a.
6.82% p.a.
$2,825
Interest-only
Variable
$0
$450
80%
7.05% p.a.
6.24% p.a.
$3,343
Principal & Interest
Variable
$0
$1,212
70%
7.24% p.a.
8.01% p.a.
$3,017
Interest-only
Variable
$20
$644
90%
8.39% p.a.
8.72% p.a.
$3,806
Principal & Interest
Variable
$0
$0
75%
8.45% p.a.
7.71% p.a.
$3,521
Interest-only
Variable
$0
$1,212
90%
8.68% p.a.
8.75% p.a.
$3,909
Principal & Interest
Variable
$0
$900
80%
  • Interest only during construction period
  • Offset sub-account available after completion
  • Unlimited additional repayments after completion

More details
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

Image by Rodnae Productions via Pexels. 



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