More Australians to get more help to buy a home

PHOTO: Starting in July, the Albanese government is expanding eligibility for several home buying schemes. FILE

More Australians will be able to apply for help in buying a new property, courtesy of the 2023 Federal Budget – and not just first home buyers.

Starting in July, the Albanese government is expanding eligibility for several home buying schemes in an attempt to make it easier for first home buyers and those who haven’t owned a home for a significant period of time to get into a property of their own.

Eligibility has been expanded for the First Home Guarantee, the Regional First Home Buyer Guarantee, the Family Home Guarantee and The Home Guarantee Scheme.

“We want more Australians to know the security of a roof over their head – which is why we’re also working with the states and territories to improve planning, build more houses and deliver a better deal for renters,” Treasurer Jim Chalmers said in his Budget Speech on Tuesday night.

The eligibility criteria for home buying schemes have been broadened.

As part of changes to Government subsidised home buying schemes, from July 1, the Government is expanding eligibility for the First Home Guarantee and Regional First Home Buyer Guarantee to any two borrowers jointly applying beyond the scope of spouse or de facto couples, and non-first home buyers who have not held a property interest in Australia within the previous 10 years.

The Government is also expanding the Family Home Guarantee to single legal guardians of dependents, in addition to natural and adoptive parents. The Home Guarantee Scheme will also be made available to permanent residents.

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There is also good news for renters, with the Government moving to ease costs by increasing the maximum rates of Commonwealth Rent Assistance by 15 per cent.

“This will provide up to $31 extra a fortnight for people renting in the private market and community housing – the largest increase in more than 30 years,” Mr Chalmers said.

The Government will increase the maximum rates of Commonwealth Rent Assistance by 15 per cent at a cost of $2.7 billion over 5 years from 2022–23.

With the Reserve Bank raising interest rates at 10 consecutive meetings, a large group of mortgage holders coming off their fixed rate terms are about to feel the pinch.

The Brisbane suburbs poised to boom

This will help recipients better manage cost-of-living pressures in the face of strong rent growth and will help alleviate rental stress experienced by Commonwealth Rent Assistance recipients, Mr Chalmers said.

Around 1.1 million households receiving the maximum Commonwealth Rent Assistance rate will be better off, the Government claimed in its Budget Papers.

In the Budget the Government also confirmed it’s commitment to the Housing Accord, which aims to build one million, new, “well-located homes” over five years from 2024.