The government's First Home Buyer Guarantee scheme will allow thousands more renters, who are struggling to save for the usual 20 per cent home deposit, the chance to enter the property market. This might leaves those using the scheme financially vulnerable, and shuts out low income earners.
The government then acts as guarantor, contributing the remaining 15 per cent and allowing buyers to avoid taking out costly lender's mortgage insurance, which on a $1 million property could cost around $50,000.
At present, the scheme has an annual cap on the number of people accessing it, as well as income caps on eligible participants and price caps on eligible properties.
But starting October 1st, there will be no income limit, no uptake limit, and an increased price cap on properties to better align with the national average.
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