FHB Deposit Reprieve

The expansion of a scheme that allows First Home Buyers to purchase with a 5% deposit and avoid expensive Lenders Mortgage Insurance has fast tracked.

Under the First Home Buyer Guarantee scheme the government guarantees the remaining 15% of the deposit with lenders.  Previously, up to 35,000 people could apply to use the scheme per year. It was to be extended to all FHB next year, but the Federal Government has bought it forward to start October 1 and has lifted income caps on eligibility.

Caps on property prices eligible within the scheme are also increasing to allow for a wider range of homes to be purchased.

In Sydney and Regional NSW centres, the maximum price will increase to $1.5 million, Melbourne and Regional Victoria centres, increase to $950,000 and Brisbane and regional Queensland, increase to $1 million.

In an effort to ensure enough new homes are built to provide housing to all buyers the Government has also announced a freeze on further updates to the National Construction Code until mid-2029.