The Treasury has announced that they will expand the property price caps for homes purchased under the new round of the First Home Loan Deposit Scheme (FHLDS) and Family Home Guarantee spots.
From the 1st of July, 2021 a total of 30,000 places will be made available under a range of schemes. 10,000 spots will be available under each of the FHLDS, the New Home Guarantee and the Family Home Guarantee.
The decision to change the property price caps comes following criticism that the caps were too low in some cities. Below is a table showing the new thresholds for the States and Territories in Australia.
Rest of State
Commenting on the decision to increase the caps, Assistant Treasurer and Minister for Housing, Michael Sukkah, said that the new caps would “ensure that people can continue to purchase a home, as well as accommodate larger families under the Family Home Guarantee”.
New home Guarantee Construction Extension
The FHLDS New Homes (also known as the New Homes Guarantee) will expand for a second year, offering an additional 10,000 places. It will provide an additional 10,000 places for first home buyers seeking to build a new home or purchase a newly built dwelling. It is also extending the construction commencement timeframe from 6 months to 12 months to be more in like within the current environment.
“The First Home Loan Deposit Scheme has been a landmark success of the Morrison Government since its commencement in 2020. 30,000 first home buyers have been supported into home ownership through First Home Loan Deposit Scheme and New Home Guarantee already,” said Minister Sukkar.
Commenting on the importance of the new Family Home Guarantee, Mr Sukkar said that the Morison government appreciates the challenges of being a single parent and aim to assist them in their efforts to build a secure home.
“We know how difficult it can be to buy a new home or re-enter the housing market, and that saving a deposit is the hardest part of getting into home ownership. That is why the Morrison Government has established the new Family Home Guarantee, which recognises the challenge of saving for a deposit is that much more difficult when you are a single parent with children. By supporting single parents and their children, we are helping them achieve the security and dignity that home ownership provides,” he said.
“Through our First Home Loan Deposit Scheme and the New Home Guarantee Program, the Morrison Government is helping more first home buyers and single parent families overcome the challenges of saving for a deposit and realising the Australian dream of owning your own home.”
If you believe you qualify for the FHLDS, New Home Guarantee or Family Home Guarantee, speak with us today to see how you can secure one of the newly available spots available on the 1st of July 2021!