The HGS includes the First Home Guarantee and the Family Home Guarantee.
The First Home Guarantee has increased from 10,000 to 35,000 places per financial year while the Family Home Guarantee is now accepting 5,000 places from 1 July to 30 June 2025.
Under the First Home Guarantee, an eligible first home buyer can purchase a property with a deposit of as little as 5% i.e. 95% loan-to-value ratio (LVR) without paying lenders mortgage insurance (LMI).
Through the Family Home Guarantee, a single parent with dependents can buy their home with a deposit of as little as 2%.
The HGS, which is administered by the National Housing Finance and Investment Corporation (NHFIC), has helped more than 61,000 Aussies purchase or build their home.
Nathan Dal Bon, CEO of NHFIC, said the expansion of the HGS was a warm welcome in the new financial year.
“NHFIC welcomes the increase of Home Guarantee Scheme places by the Australian Government,” Mr Dal Bon said.
“As an organisation, we support Australians across the housing spectrum from those renting in community housing, through to Australians with the goal of homeownership.
“We expect many more Australians to be able to bring forward buying a home under the expanded Scheme.”
Kristin Brookfield, Housing Industry Association (HIA) Chief Executive of Industry Policy, said the HGS expansion is great news for all aspirational home buyers.
“HIA has always maintained that owning your home is the best form of financial and personal security a person can have,” Ms Brookfield said.
“The allocation released today takes the scheme from its original pilot phase, to a well accepted part of the home buying landscape in Australia.
“HIA’s research earlier this year showed that 85% of renters in Australia aspire to own their one home, but only 49% believe the dream is an achievable one.
“The Home Guarantee Scheme goes a long way to helping that dream become a reality and HIA looks forward to its continued success.”
Banks already welcome the expanded HGS
As a participating bank, NAB data revealed solo buyers purchased 63% of houses with the HGS in the past six months.
Of the 63% of First Home Guarantee single borrowers, 59% were female while 41% were male.
The data also showed younger Australians are benefiting from the schemes.
Of the NAB customers who are eligible for the First Home Guarantee, 21% are under 30 compared to 17% of non First Home Guarantee customers.
Andy Kerr, NAB Executive Home Ownership, said the HGS has given solo and younger buyers the opportunity to get a foot on the property ladder.
“People going at it alone shouldn’t be disadvantaged and we are seeing the Scheme help them buy a property,” Mr Kerr said.
“With a backdrop of house price growth slowing and in Sydney and Melbourne where it is going backwards, there is some relief in sight for first home buyers.
“Flexible working is providing first home buyers more choice of locations than ever before, with regional purchases in the Scheme up two per cent compared to the same time last year.”
Great Southern Bank has also welcomed the expanded HGS.
“Our purpose as a bank is to help all Australians to own their own home - so naturally we are committed to help more people take that step through the Home Guarantee Scheme,” Chief Customer Officer Megan Keleher said.
“We expect the First Home Guarantee will continue to be very popular.
“We’ve already helped more than 3,500 customers to buy their homes through Australian Government homebuyer support schemes, and we plan to help many more under the new model.”
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