Many things were covered off in the 2022-2023 Budget. One I like is the temporary cut to fuel tax! The government is set to reduce fuel excise by 50% for six months, down from its current 44.20 cents per litre to 22.10 cents. Maybe a little longer would be a great idea Treasurer! 🤔
Home ownership is a big focus in this year’s budget with one I would highlight today being of particular interest to first home buyers.
As indicated on Monday 28th March, the government has extended its home guarantee scheme, expanding the number of places under its first home guarantee and its family home guarantee programs, and launching a new scheme solely for regional Australia.
There will be 35,000 guarantees available per year for the First Home Guarantee (previously the First Home Loan Deposit Scheme – FHLDS), up from the current 10,000 from the 1st July. The scheme, started in 2020, and allows first home buyers to purchase a home with a deposit as small as 5% while the government guarantees up to 15% of the property purchase price. This ultimately helps the borrowers save money as the lenders’ mortgage insurance (LMI) fee will not be required to pay. It has changed the game for many of our first home buyers!
Since coming into play, we have lost count of the amount of first home buyers we’ve supported and helped buy a home utilising a FHLDS spot. We currently have many in flight applications with scheme spots being reserved every week for our clients which is so exciting! It really does open up such a big opportunity, especially for those with a small deposit amount saved.
If you’ve been working towards buying a home and you’re not quire ready, things are still looking positive for future FHLDS positions.
We always say timing is a key element in the the home buying decision process. With home loan interest rates steadily on the rise, and a settling down of property prices being noticed, it’s important to have a game plan in place if you aren’t sure where you’re sitting on the path to being prepared to buy a home.