According to Domain, it takes a young couple on an average income, eight years and one month of saving to reach a 20 per cent deposit for a Sydney house worth $900K. In Melbourne, it takes six and a half years on average and nearly five years in Brisbane.
With homeownership becoming out of reach for most, the federal government recently announced updates to home buyer incentives, in an effort to help first home buyers, single parents and regional buyers.
New Home Guarantee
The New Home Guarantee was previously known as the First Home Loan Deposit Scheme. It allows would-be buyers to purchase property with a deposit of only 5% and avoid paying Lenders Mortgage Insurance, as the government guarantees the loan. The number of places will be extended from 10,000 to 35,000 each year from July 2022, allowing thousands of home buyers the ability to get into the market sooner.
To be eligible, you must be a first home buyer purchasing an owner-occupied property. You must be an Australian citizen over 18 years of age with an income cap of $125,000 for individuals, and $200,000 for couples.
Family Home Guarantee
The Family Home Guarantee assists single parents purchasing property with a deposit as little as 2% to avoid Lenders Mortgage Insurance, with the government guaranteeing the loan. Places will be extended by 5,000 each year.
To be eligible, you must be a single person with at least one dependent child. ??This scheme applies to first home buyers or previous owners who do not currently own a home.
First Home Super Saver Scheme
The First Home Super Saver Scheme allows eligible first home buyers the ability to make extra contributions into their super fund with the returns to be put towards a property deposit. The maximum amount of eligible contributions will increase from $30,000 to $50,000 per financial year as of 1 July 2022.
Regional Home Guarantee
The recently announced Regional Home Guarantee is designed to help Aussies buy or build a new home in regional areas. It allows the purchase of property with a deposit as low as 5 per cent. The government will make 10,000 places available to first home buyers, those who have not owned a property in the last five years, and permanent residents.