- REIA urges eligible applicants to secure a government guaranteed home loan
- Adrian Kelly welcomes the new programs aimed at assisting home ownership
- Programs primarily help first home buyers and single parents
The Real Estate Institute of Australia (REIA) has urged eligible homebuyers to secure getting a government-guaranteed home loan under the First Home Loan Deposit Scheme, the temporary New Home Guarantee program and the Family Home Guarantee.
REIA’s President, Adrian Kelly has welcomed the Morrison Government’s announcement expanding government-led guarantees for single parents and first home buyers.
Mr Kelly said the release of an additional 30,000 places to eligible applicants will provide economic security for Australians.
The Family Home Guarantee will provide eligible single parents with dependents the opportunity to build a new home or buy an existing home with a deposit of 2%. This aims to support women in particular, as they make up the majority of custodial parents. Mr Kelly lauded the program as a “life-changing win for women.”
The First Home Loan Deposit Scheme will allow first home buyers to buy a home sooner with a deposit of 2%. Attached to this is also a temporary deposit scheme for building new homes, with an additional 10,000 places announced in the most recent budget.
The aim of these programs is to alleviate the increasingly difficult hurdle of saving for a deposit. According to the Grattan Institute – in the early 1990s, it took 6 years to save a 20% deposit on an average home. Today it takes 10 years.
Mr Kelly said the new places will assist Australians in achieving the aspiration of homeownership.
“It can be difficult to buy a new home or re-enter the housing market, and that saving a deposit is the hardest part of getting into homeownership so the government support will help ease that issue.”
REIA is urging first home buyers and single parents to review eligibility requirements, find out who the participating panel of lenders are, and speak with their local real estate agent.
