- The Family Home Guarantee was the centrepiece of last month's federal budget
- Single parent families could access their first home for 2% deposit
- The government has announced it is looking to make 30,000 more spaces available
Arguably one of the most reported initiatives of last month’s federal budget was the Family Home Guarantee whereby the government would guarantee 18% of a home loan for 10,000 single parents – meaning the buyer can purchase a property with just a 2% deposit (rather than the whole 20%).
At first glance, this looked very much like a successful scheme that has been operating in Western Australia for many years, called Keystart. Established in 1989, they have helped over 115,000 West Australians into their own home.
Overall, the new policy garnered a positive reception.
Single parents typically have lower rates of homeownership compared to the rest of the population and women represent about 64% of lone parent and adult households, according to the Australian Institute of Health and Welfare.
Recently, the government went further announcing a significant expansion of various housing programs in order to help more people into their first home and strengthen economic recovery.
Not surprisingly, the home building industry is delighted.
“The release of 30,0000 new places in the highly successful First Home Loan Deposit Scheme, New Home Loan Guarantee and the Family Home Guarantee will boost the economic security of thousands more people, including single parents, and continue to accelerate the recovery.”
“We know that the deposit gap is the greatest barrier to people owning their first home. The [program] will mean that thousands of single custodial parents, the vast majority of whom are women, can access the life-changing benefits of homeownership. We want this measure passed by the Parliament without delay,” she said.
“Providing more people with the support to make the step up to owning a home is also fundamental to a stronger economy which benefits the whole community.”
“With every dollar spent in building new housing resulting in 3 dollars benefit for the wider economy, it is clear why the Federal Government’s measures are having such a strong positive effect,” Denita Wawn said.