Real Estate Institute encourages first-time buyers to use Home Guarantee Scheme

The Real Estate Institute of Australia (REIA) is urging prospective homebuyers to take advantage of the 50,000 new places available under the Australian Home Guarantee Scheme (HGS) from July 1, 2024.

Key points:

1. REIA President Leanne Pilkington describes the HGS as a “proven tool” to help homebuyers enter the market despite supply shortages and affordability challenges.
2. The scheme has already helped 160,000 Australians purchase homes, including first-time buyers, single parents, and people in regional areas.
3. For the 2024-25 financial year, the 50,000 new places are distributed across three Scheme Guarantees:

• 35,000 places for the First Home Guarantee (FHBG)
• 10,000 places for the Regional First Home Buyer Guarantee (RFHBG)
• 5,000 places for the Family Home Guarantee (FHG)

1. Pilkington advises prospective buyers to speak with mortgage brokers, who secure up to 80% of HGS placements and can provide advice on options.
2. The REIA acknowledges the challenging market conditions for entry-level buyers, particularly given broader cost of living pressures.

Pilkington stated, “Obviously market conditions are tough out there for entry level buyers particularly when you take into account broader cost of living pressures, so it is imperative that consumers use all tools in their toolbox and the HGS will be essential to some buyer’s considerations.”

The HGS is an Australian Government initiative administered by Housing Australia and is available through 32 participating lenders.

This announcement comes as the real estate market continues to face affordability challenges, with the REIA encouraging first-time buyers to explore all available options to enter the property market.