
Almost 1,800 people in South West Sydney have been able to buy a home of their own with a smaller deposit thanks to the Home Guarantee Scheme.
Local federal member, Dr Mike Freelander, pictured above near Appin, says he wants to see that number go much higher.
“I know people in my community are finding it tough to buy their own home and so I want to encourage people to work with their banks to see if this scheme could be right for them,’’ says Dr Freelander.
“Not enough people know about this scheme, and that for eligible participants it makes the 20 percent deposit a thing of the past.
“You can get into your own place with a deposit as low as 5 percent.
“You can also team up with siblings and friends, so head to the Housing Australia website to see what’s available,’’ Dr Freelander said.
“Labor is building Australia’s future, and I want to help my local community build their futures with a home of their own – that’s why I’m so excited about the success of this scheme.’’
More than 200,000 Australians have been able to buy a home of their own with the help of the expanded Home Guarantee Scheme.
Under the scheme, a portion of an eligible home buyer’s home loan is guaranteed by Housing Australia, enabling them to buy a home with as little as a 5 percent deposit while avoiding Lenders Mortgage Insurance, which in some cases can be tens of thousands of dollars.
The latest Home Guarantee Scheme Trends and Insights Report found that 1 in 3 first home buyers took up the Scheme in 2023-2024 and that it has helped a range of participants get into a home sooner.
According to the report, more than 50 percent of eligible buyers are women and are under the age of 30.
This is a dreadful scheme as you pay full rates and maintenance but the government retains part ownership and you pay them back as a proportion of the sale price when you eventually sell. Much better to save at least 5% if you can ($40k on a $800k purchase) and first home buyers get Stamp duty waived, with the Federal government first home buyer’s guarantee (also open to people who haven’t owned in 10 years) so that you retain ownership of 100% of the property.