In July 2023, significant changes were implemented by the federal and state governments that have an impact on homeowners and buyers. Notably, the First Home Guarantee buying scheme has been expanded, providing more opportunities for first-home buyers. An additional 35,000 places have been made available, allowing these buyers to purchase a new or eligible existing property with a deposit as low as 5%. The most beneficial aspect of this expansion is that it enables them to avoid lenders' mortgage insurance (LMI) burden.
Furthermore, the regional first-home buyer guarantee has been bolstered with the inclusion of 10,000 more places. Additionally, single parents now have greater support through the family home guarantee (FHG) scheme, which has seen the addition of 5,000 places.
In the state of New South Wales (NSW), the government has taken action to ease the burden of stamp duty for first-home buyers. The threshold for stamp duty exemptions under the First Home Buyers Assistance Scheme has been raised to $800,000, up from the previous limit of $650,000. Moreover, there are concessions applicable on a sliding scale for properties valued up to $1 million. To qualify for these benefits, individuals must be Australian citizens or permanent residents aged 18 and above, purchase their first home as owner-occupiers, and commit to residing in the property for a minimum of 12 months.