More applications lodged for assistance to buy a home with a friend or sibling

Once upon a time you wouldn’t even lend your sister a shirt, let alone buy a house with her. But now, times are tough, and that’s what some home buyers are resorting to. Here’s why.

Hobart aerial from Mount Stuart. Picture: Supplied

More Australians have taken up the offer of federal government assistance to buy a home, after rules were changed to be eligible for the help if they wanted to buy a house with a friend.

Under the Home Guarantee Scheme, buyers can purchase a home with a deposit as little as five per cent, without having to pay mortgage lenders insurance.

In July last year, the First home Guarantee and the Regional Fire Home Buyer Guarantee were expanded, allowing friends and family members who planned to lodge a joint application to access the assistance.

Prior to this, applicants needed to apply solo or with their spouse.

Six months after the rule change, there were more than 300 joint applications between friends and non-marital family members.

“We’ve now got more than 300 Australians that would not have purchased a home, that have been able to because we changed the eligibility in terms of friends and siblings,” Federal Housing Minister Julie Colins said.

Federal Minister for Housing Julie Collins in Hobart. Picture: Nikki Davis-Jones

“What we are trying to do is support Australians into home ownership.

“Rather than just couples applying for the home guarantee scheme, friends, siblings can go and apply for the scheme.”

Per year there are only 10,000 places available for the regional first homebuyer guarantee and 35,000 places for the first home guarantee.

And there are other conditions: The application can’t be with three or more people, there are price caps, depending on where the home is located, and only those earning less than $125,000 on their own, or $200,000 combined for joint applicants are eligible.

The eligibility was also changed to allow those who haven’t owned a home in ten years to be able to access help.

Since May, 2022, 1211 Tasmanians have accessed the Home Guarantee Scheme, including 586 in Hobart, 233 in the north and northeast of the state, 27 in the southeast and 365 in the west and northwest.