Helping first home buyers and single parents access new loans

Eligible first home buyers and single parents with at least one dependent child now have greater access to home ownership thanks to extended Federal Government arrangements. The amended provisions give tens of thousands of prospective borrowers a chance to get on the property ladder.

Our MyState Bank lending team and broker network across Australia have been updated on the changes to the Home Guarantee Scheme, following our recent MyState MyKnowledge webinar, presented by MyState Bank Broker Relationship Manager Isaiah Tait. Here are some of the insights shared during the session.

The Home Guarantee Scheme explained

The Home Guarantee Scheme gives eligible first home buyers and single parents with at least one dependent child the ability to buy a home with a deposit as small as 5% for the First Home Guarantee (FHBG) and 2% for the Family Home Guarantee (FHG). Previously known as the First Home Loan Deposit Scheme, the initiative has been rebranded as the Home Guarantee Scheme (HGS) and extended at the 2022-23 Federal Budget. Two programs, the First Home Guarantee and the Family Home Guarantee, are part of the HGS.

From 1 July 2022, the number of places available for eligible first home buyers under the FHBG increased from 10,000 to 35,000 each financial year. Singles who apply must have earned a taxable income of $125,000 or less in the 2021-22 financial year, as shown on the Notice of Assessment (issued by the Australian Taxation Office). Couples must have an annual combined taxable income of not greater than $200,000, as shown on the Notice of Assessment (issued by the Australian Taxation Office). They may borrow funds for a mortgage with a loan to value ratio (LVR) of up to 95%, as long as they have a deposit of at least 5%.

Additionally, from 1 July 2022 to 30 June 2025, 5000 places are available each financial year under the FHG. The FHG allows single parents with at least one dependent child to borrow funds for a mortgage with an LVR of up to 98% with a deposit of at least 2%. Applicants must not currently have a freehold interest in a property, lease of land or a company title interest in land in Australia, and their taxable income must be no more than $125,000 for the 2021-22 financial year as shown on the Notice of Assessment (issued by the Australian Taxation Office).

From 1 July 2022, new price caps on property values will apply to the First Home Guarantee and Family Home Guarantee for new applications. The price caps are determined by postcode and can be accessed at either the National Housing Finance and Investment Corporation’s web site, or MyState Bank website.

As of August 2022, there are place available across both Guarantees, so there’s ample opportunity for prospective first home buyers and single parent borrowers to buy their own home.

Getting started

MyState Bank customers and non-customers can check their eligibility for these loans and the Home Guarantee Scheme by contacting MyState Bank directly or talking to an independent mortgage broker.

Support for brokers

MyState has many resources and guides to assist brokers to navigate the requirements of the Home Guarantee Scheme and give their clients the best chance of being approved for the Scheme.

“We are here to help. Your MyState Bank Business Relationship Manager should be your first port of call when you have clients wanting to access these Federal Government programs, and they can guide you through the application process,” says Blake Albones, MyState Head of Lending Distribution (Retail, Broker & Digital).

Your MyState Bank Broker Portal has tools to assist you:

• Home Guarantee Scheme forms, guides and application checklists
• DocuSign Guide
• Links to state and territory schemes
• Access to a high-risk and emerging risk postcode register
• Serviceability calculator