Home Guarantee scheme hits 100,000 milestone

100,000 Australians have jumped at the federal government scheme which allowed first home buyers to get into the market with a deposit as low as 5 per cent.

The federal government’s low ­deposit scheme has passed a new milestone, helping 100,000 Australians into their first home, with half of the limited guarantees ­secured within the past year.

The Home Guarantee Scheme was introduced in January 2020 to allow low and middle-income owners the chance to purchase a modest first home with a deposit as low as 5 per cent.

Only 10,000 places within the scheme were offered in the first three intakes, which reset each ­financial year, but has since been expanded to include thousands of new allocations for those building new, living in the regions, and ­single parents.

One in five who have taken advantage of the support in the past three years to overcome the deposit hurdle were key workers, including more than 6700 ­teachers, 5000 nurses and almost 3500 social workers.

Around 34,000 places went to those outside of Australia’s major cities.

Nathan Dal Bon, chief executive of the National Housing ­Finance and Invest Corporation, which administered the scheme, said the organisation was committed to helping people into homes.

“This is a wonderful milestone in the delivery of the ... scheme,” Mr Dal Bon said. “We look forward to helping more Australians over the coming years into homes sooner.”

The next intake of the scheme will begin on July 1.

An expansion of the eligibility criteria for the home guarantee was announced in last month’s federal budget.

The scheme will no longer be restricted to singles and couples, as friends, siblings, and other family members will soon be allowed to make joint applications.

The single-family guarantee criteria will also be widened from natural or adoptive parents with dependants to include single legal guardians of children, such as aunts, uncles and grandparents.

For the first time, it will also ­expand from new market entrants only, with the scheme to be offered to those who have not owned a home for more than a decade, to help them buy back in.

Federal Housing Minister Julie Collins said it was hoped the changes would allow more people to buy a home.

“It’s great that so many Australians have been helped into home ownership through the ­Albanese government’s expanded ... scheme,” Ms Collins said.

“We know this support is ­critical to help Australians overcome the deposit hurdle for buying a home.”

Home price maximums, which differ between cities and regions, and income caps will ­remain the same.