Mortgage Business
Family Home Guarantee price caps face scrutiny By Sarah Simpkins 07 June 2021
The Minister for Financial Services has faced some pointed questions around the new Family Home Guarantee, with a senator blasting its recently revealed pricing limits.
The Family Home Guarantee, which was introduced in the federal budget, aims to allow single parents with dependent children and who do not currently own a house to purchase one, with a deposit as small as 2 per cent.
The initiative, which will act in a similar way to other existing government guarantee schemes, will provide 10,000 guarantees over four years.
Jane Hume, Minister for Financial Services, told Senate estimates last week that the government has budgeted for 10,000 families and will re-evaluate when it sees what the demand is like.
Among the bolder claims in last month’s budget was that “under the Coalition, home ownership will always be supported”.
Since the Howard government took office in 1996, the proportion of Australian households owning the home they live in has fallen from 70% to 66%.
The proportion having paid off their mortgage has fallen from 40% to 30%.
The proportion renting privately has climbed from 20% to 27%.
In the lead up to the budget, home prices began climbing again, soaring 8.5% in Melbourne and 11% in Sydney.
The response was a series of measures designed to look as if they would help people buy their own homes.
Shuffling the queue
Mortgage Business
NHFIC releases Family Home Guarantee price caps By Malavika Santhebennur 04 June 2021
The NHFIC has revealed the property price thresholds that are applicable to the Family Home Guarantee scheme announced in the 2021-22 federal budget.
The National Housing Finance and Investment Corporation has provided details about the property price thresholds for the federal government’s Family Home Guarantee scheme, confirming expectations that it will duplicate the First Home Loan Deposit Scheme (FHLDS) price caps.
The Family Home Guarantee scheme (designed to assist single parents purchase property) formed a part of three measures targeting home ownership in the 2021-22 federal budget released in May.