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First home buyer scheme getting results!

By August 29, 2023No Comments

The federal government’s Home Guarantee Scheme (HGS) is successfully helping first home buyers into the market, especially those on lower incomes, according to a new study by the National Housing Finance & Investment Corporation and Commonwealth Bank.

Since 2020, the average deposit by first home buyers using the HGS has barely changed, rising from $35,226 to $36,432, an increase of just 3.4%. But the average deposit required by the broader first home buyer market has jumped from $108,373 to $158,978, an increase of 46.7% (see image).

At the same time, households using the HGS tend to have a lower average income ($108,000) than the broader first home buyer market ($117,000).

Under the HGS, the government helps eligible first home buyers enter the market with just a 5% deposit, without needing to pay lender’s mortgage insurance.

Speak to CLS for more information.

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