FIRST HOME BUYERS

The Home Guarantee Scheme is an Australian government initiative to help eligible home buyers purchase their home sooner.  

The Scheme is administered by the National Housing Finance and Investment Corporation (NHFIC) on behalf of the Australian Government.

The Scheme includes three types of Guarantees:  

• First Home Guarantee (FHBG) 
• Regional First Home Buyer Guarantee (RFHBG)
• Family Home Guarantee (FHG)  

 The First Home Super Saver Scheme allows first-home buyers to save a deposit for their first home inside their super account, to take advantage of the concessional tax treatment. 

The scheme allows you to make voluntary contributions (both before-tax concessional and after-tax non-concessional) into your super fund to save for your first home. 

If you meet the eligibility requirements, you can have these voluntary contributions released, up to a limit, (along with associated earnings) to help you purchase your first home.

The Help to Buy scheme is a shared equity scheme wherein the government helps eligible home buyers purchase a home  by contributing up to 40% of the property price for a new home and up to 30%  for an existing one.  Participants will only need 2% deposit and will not have to pay Lenders Mortgage Insurance. 

The scheme is designed to help with the longstanding affordability crisis. and there will be 10,000 places available for eligible Australians each year.

In Australia, a Guarantor Home Loan is a type of mortgage where a family member, usually a parent or close relative, uses the equity in their own property as security to help another family member, typically a first-time buyer, secure a home loan. 

Essentially, the guarantor provides a guarantee to the lender that they will cover the repayments if the borrower defaults. 

This arrangement can help borrowers who may not have a sufficient deposit or stable income to qualify for a loan on their own. 

It is important for both the borrower and the guarantor to understand the risks 

involved, given that the guarantor's property becomes vulnerable in the event of the borrower defaulting on the loan.