The government extends first-home schemes in 2022

28 March 2022

Written by: Mai-Anh Dao

The programme will support Australians struggling to get into the property market.

The Federal Budget 2022 will extend homeowner schemes to relieve pressure on living costs.

The programme, First Home Guarantee, assists in the purchase and construction of a “residential property”, including existing houses, apartments, house and land packages, building homes and off-the-plan apartments and townhouses. Different property types require a specific date and applications.

Treasurer Josh Frydenberg told the ABC that he believes the programme will help more people who have struggled to get into the market.

“Since January 2020, the Government’s Home Guarantee Scheme has helped almost 60,000 home buyers purchase their first home,” he said.

Usually, first home buyers have to pay lenders’ mortgage insurance if they deposit less than 20 per cent. Under the scheme, eligible buyers can purchase a modest home with as little as five to two per cent.

However, the value of the property within the scheme cannot exceed the price cap where it is located. In Victoria, it is $700,000 for the capital city and regional centres and $500,00 for the rest of the state.

The Federal Budget 2022 will also include nearly $18 billion for transport infrastructure to upgrade and build roads and railway lines. More money will also be funded for commuter car parks, echoing the 2019 election campaign when millions of dollars were promised for car parks near train stations.

A detailed scheme will be outlined in tomorrow’s budget announcement.


Photo: Sold it by Vicki available HERE and used under a Creative Commons licence. The photo has not been modified.