In a new plan to overcome the soaring house prices seen across the country, first-home buyers will soon be able to buy higher value homes with a five per cent deposit.
The Morrison government has expanded its guarantee scheme. As of July 1st 2022, the price caps on new and existing homes that can be purchased with government assistance will rise by $100,000 in Melbourne, Sydney, Brisbane, Perth, Adelaide and Hobart.
House price cap updates per state:
|Location||Existing cap until 30 June 2022||New cap from July 1st 2022|
|NSW (capital city and regional centre)||$800,000||$900,000|
|NSW (rest of state)||$600,000||$750,000|
|VIC (capital city and regional centre)||$700,000||$800,000|
|VIC (rest of state)||$500,000||$650,000|
|QLD (capital city and regional centre)||$600,000||$700,000|
|QLD (rest of state)||$450,000||$550,000|
|WA (capital city and regional centre)||$500,000||$600,000|
|SA (capital city and regional centre)||$500,000||$600,000|
|SA (rest of state)||$350,000||$450,000|
|TAS (capital city and regional centre)||$500,000||$600,000|
|TAS (rest of state)||$400,000||$450,000|
Access to the scheme is capped, with 50,000 places available to the public. 35,000 of these places include the government guarantee of up to 15 per cent of their loan to avoid the upfront expense of lenders mortgage insurance (LMI). This means you can secure your dream home with only a 5 per cent deposit.
Benefits for regional home buyers
The guarantee scheme includes 10,000 places for those wanting to buy or build a new home in regional areas. This also includes 5,000 places for single parents looking to buy their first property or re-enter the housing market with just a 2 per cent deposit.
The capital city threshold has also been extended to larger regional centres, including cities larger than 250,000 people such as Newcastle, Lake Macquarie, Illawarra, Geelong, Gold Coast and Sunahine Coast.
This scheme is giving buyers in regional Victoria and New South Wales access to homes worth an extra $150,000. The biggest increase in the cap has been seen in Canberra, where the purchase price cap was $500,000 and is now $750,000.
Do you qualify?
If you’re looking to make a move in the property market and would like to know if you qualify for the guarantee scheme, speak to a Loan Gallery Broker to discuss your suitability. We work with you to identify what grants or schemes you can apply for, and submit the applications on your behalf.
With 50,000 places available, this is an opportunity too good to miss. Contact us today if you are looking to buy your first home in Melbourne.