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Hundreds of families are ushering in 2023 in a new home, thanks to the Regional First Home Buyer Guarantee being launched three months earlier than planned by the Albanese government.
Since the guarantee’s rollout on 1 October, 1,200 Australians have been able to buy a new home in regional Australia with government assistance.
This comes amidst some of the largest declines in housing affordability in regional areas, which made it increasingly hard for locals to save a sufficient deposit.
Under the initiative — which attempts to quickly assist qualified first-time purchasers into home ownership — eligible first home buyers can get up to 15 per cent of government guarantee, allowing regional Australians with a deposit of as little as 5 per cent to avoid lenders mortgage insurance (LMI).
This means that Aussies can borrow up to 95 per cent of the property’s value, with the federal government providing the lender with a guarantee worth up to 15 per cent of the property’s price.
The scheme was originally unveiled as part of the Labour party’s plan to tackle Australia’s housing crisis in the lead-up to the 2022 election. An expansion of the then nation-leading Morrison government’s federal government’s Home Guarantee Scheme, it is designed specifically to provide a boost for first home buyers in regional Australia.
During the program’s launch — which was fast-tracked three months by the government — industry bodies threw their support behind the initiative, with REIA president Hayden Groves relaying that the timing of the scheme’s beginning was pertinent.
In addition to the RFHB, the Albanese government is also looking to deliver other programs and initiatives under its ambitious housing reform agenda focused on helping more Aussies turn the Great Australian Dream into a reality by getting them into a home.
On 19 December, the government released draft legislation to establish the $10 billion Housing Australia Future Fund, which aims to provide ongoing investment returns to deliver 30,000 new social and affordable homes in the fund’s first five years. This includes 4,000 homes for women and children impacted by family and domestic violence or older women at risk of homelessness.
The government concurrently released draft legislation to create Housing Australia and establish the National Housing Supply and Affordability Council.
On 1 January, an interim National Housing Supply and Affordability Council was established to start delivering immediate advice to the government and is intended to operate until the council is established permanently in legislation.
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