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COALITION’S HOME GUARANTEE SCHEME CONTINUES TO SUPPORT HOME OWNERSHIP
THE HON MICHAEL SUKKAR MP
Shadow Minister for Social Services
Shadow Minister for NDIS
Shadow Minister for Housing
Shadow Minister for Homelessness
MEDIA RELEASE
Thursday, 3 November 2022
COALITION’S HOME GUARANTEE SCHEME CONTINUES TO SUPPORT HOME OWNERSHIP
The third annual First Home Loan Deposit Scheme (FHLDS) report released today by the National Housing Finance and Investment Corporation (NHFIC) confirms the success and the enduring legacy of the Coalition government’s Home Guarantee Scheme.
Following the 2019 election, the Coalition government established the FHLDS which allows eligible first home buyers to purchase a home with a deposit of as little as 5 per cent.
In addition to lowering the deposit hurdle for eligible first home buyers, it also saves participants the costs of lenders mortgage insurance.
Later the FHLDS was included as part of a broader Home Guarantee Scheme, which included the New Home Guarantee, Family Home Guarantee and Regional Home Guarantee.
The NHFIC trends and insights report confirms that the Home Guarantee Scheme has been the singularly most successful scheme supporting Australians into their own home for decades.
In particular, the NHFIC trends and insights report revealed around 1 in 7 first home buyers received support from the FHLDS in 2021-22, which increased from around 1 in 10 during the previous year.
It also showed younger Australians overwhelmingly being supported by the Scheme, with more than half of all homes in 2021-22 being purchased by Australians between the ages of 25 – 34.
More than 5,400 guarantees were issued to essential workers in 2021-22. Teachers and nurses accounted for 57 per cent of recipients, while social workers accounted for 17 per cent and aged and disability carers 9 per cent.
Given the undeniable success of the Home Guarantee Scheme, the Coalition implores Labor not to tamper with an already comprehensive and successful initiative that has been delivering real results to Australians since its inception on 1 January 2020.