Significant changes to the Australian Government’s Home Guarantee Scheme are now in place, making home ownership more accessible for first home buyers across the ACT and Australia. The expanded scheme removes previous limitations and increases property price caps to better reflect current market conditions.

What’s changed

The Home Guarantee Scheme has undergone substantial improvements that address many of the barriers first home buyers previously faced:

• No place limits: All Australian first home buyers who have saved a 5% deposit can now apply, without the risk of missing out due to quota restrictions.
• No income caps: First home buyers with higher incomes can now access the scheme, removing the previous earnings threshold that excluded many dual-income households.
• Higher property price caps: In the ACT, the cap has increased from $750,000 to $1,000,000, reflecting current property prices in the Canberra region.
• Simpler regional access: The Regional First Home Buyer Guarantee has been replaced by the First Home Guarantee, streamlining the application process.

The practical benefits

The Home Guarantee Scheme allows eligible first home buyers to purchase with as little as a 5% deposit whilst avoiding Lenders Mortgage Insurance (LMI). This can represent thousands of dollars in savings on upfront costs.

For example, on a $1,000,000 home, a realistic price point for many Ginninderry blocks, a 5% deposit of $50,000 is considerably more achievable than the traditional 20% deposit of $200,000. This difference could mean the ability to enter the market years earlier than previously possible.

How to Apply

The application process is straightforward:

1. Check your eligibility using Housing Australia’s Eligibility Tool
2. Verify the property price caps for your area ($1,000,000 in the ACT)
3. Contact one of over 30 Participating Lenders across Australia
4. Submit your application through your chosen lender
5. Once pre-approved, begin your property search

The scheme is available through major banks, customer-owned banks, and regional institutions, providing competitive lending options.

Ginninderry and the Home Guarantee Scheme

For those considering Ginninderry, the expanded scheme opens up more possibilities. With blocks available in Macnamara, the increased property price cap of $1,000,000 means more options are now accessible to first home buyers using the scheme.

The removal of income caps is particularly relevant for professionals and dual-income households who previously earned too much to qualify but still struggled to save a 20% deposit whilst managing living costs in Canberra.

The scheme applies to both house and land packages and vacant blocks, provided the total purchase price (including building costs) falls within the property price cap.

Important considerations

Whilst the scheme provides easier market entry, responsible financial planning remains essential:

Borrowing capacity: Ensure loan repayments are comfortable within your income. A lower deposit doesn’t mean you should stretch your budget to the maximum.

Ongoing costs: Budget for council rates, utilities, maintenance, insurance, and potential interest rate changes.

Long-term planning: Choose a property that suits your needs beyond just immediate affordability.

Professional advice: Consult with a financial adviser or mortgage broker to assess your individual circumstances and borrowing capacity.

Next steps

If you’ve been working towards home ownership, now is the time to:

• Review your current savings and financial position
• Check your credit score and address any issues
• Research and compare Participating Lenders
• Seek pre-approval to understand your borrowing capacity
• If considering Ginninderry, contact the sales team to discuss available blocks and current pricing.

Understanding the opportunity

The expanded Home Guarantee Scheme represents a policy response to housing affordability challenges. By removing arbitrary place limits and adjusting price caps to reflect market realities, the scheme provides a more accessible pathway to home ownership for those who have saved a deposit but struggle with the traditional 20% requirement.

For first home buyers in the ACT, particularly those interested in sustainable communities like Ginninderry, the changes provide genuine opportunities to enter the market sooner than the traditional savings timeline would allow.

Standard lending criteria still apply, including credit history, employment stability, and capacity to service the loan. The scheme provides assistance with deposit requirements and LMI, but doesn’t change fundamental lending assessments.

For detailed information about eligibility and participating lenders, visit the Housing Australia website. To discuss purchasing options at Ginninderry, contact our sales team.

Note: This article provides general information only and should not be considered financial advice. Always consult with qualified financial professionals regarding your individual circumstances.