FHB's Take Govt Help The number of first home buyers (FHB) accessing the Federal Government’s Home Guarantee Scheme hit 45,000 in the 2023 financial year. The National Housing Finance Investment Corporation (NHFIC) which oversees the scheme, reveals one in three FHB in Australia has been assisted by it. About 10,860, or more than one-third of all guarantees, were given to buyers in regional areas, up from 7390 in the previous financial year.
The scheme, allows first-home buyers to purchase a home with a minimum deposit of 5% to avoid paying mortgage lenders’ insurance. The remaining amount of a 20% deposit is guaranteed by the Federal Government. NHFIC research head Hugh Hartigan says FHB have had to rely more heavily on the scheme as a result of cost-of-living pressures and rising interest rates. The NHFIC estimates that buyers would need to delay their home purchase by an average of five years if they needed to save the entire 20% deposit on their own.
