Buying first home sooner

With the trend towards regional relocation having lost its pandemic induced intensity, there is some sense in looking at the buying opportunities outside of capital cities.

And the recent Albanese government housing initiative, the Regional First Home Buyer Guarantee (RFHBG) scheme is there to assist first timers.

The scheme only kicked off last October, with 10,000 loans available for low and middle income buyers earning up to $125,000 for individuals or $200,000 for couples.

Underpinned by government support, purchasers are permitted to spend up to $750,000.

The National Housing Finance and Investment Corporation provided The Daily Telegraph with the latest figures showing nearly 5000 places have been taken up nationally, of which close to 4000 have a signed contract, or have settled their home and moved in.

Those aged between 18 to 29 account for two-thirds of the RFHBG applications which must please the Housing Minister Julie Collins.

The RFHBG is part of the Australian Government’s Home Guarantee Scheme (HGS) which has 32 participating lenders including major banks NAB and CBA. Westpac joins the scheme in July.

From July the scheme will be available to any two eligible borrowers, beyond spouse or de facto partners, and to nonfirst home buyers, where they have not owned a property in Australia in the past 10 years.

The federal government has made 35,000 places available per year across the HGS with support for buyers with deposits of as little as five per cent.

Meanwhile, the 5000 Family Home Guarantees allow single parents with dependants to purchase with as little as a two per cent deposit.