Budget 2021-22: putting home ownership within reach

Five government incentives that could help you secure your spot in today’s property market.

13 May 2021|3 minute read

mother and son playing in new home

If you are looking to buy a new home, an existing home, or renovate your current home, it could be a great time to make it happen, with a range of grants and incentives unveiled in the 2021-22 Federal Budget to help you turn that dream into reality.

So, if you’re finding it hard to save up for your home ownership goals, the government has recently announced five initiatives on offer from the next financial year, to help you make moves in the property market.

Key points

  • Family Home Guarantee: 10,000 spaces for eligible sole parents with dependent children to purchase a home (new or existing) with a deposit of just 2 per cent.
  • First Home Super Saver Scheme: eligible first home buyers will be able to release up to $50,000 of their voluntary superannuation contributions to put towards their first home.
  • First Home Loan Deposit Scheme: 10,000 spaces for eligible first home buyers to purchase a home (new or existing) with a deposit with as little as 5 per cent (lenders criteria also apply).
  • New Home Guarantee: 10,000 places made available for eligible first home buyers seeking to build a new home or purchase a newly built home with a deposit as low as 5 per cent.
  • HomeBuilder: the construction period for existing applicants under the $25,000 HomeBuilder Grant has been extended to 18 months. Eligible home owners, including first home buyers, can use the grant to build a new home or substantially rebuild an existing home.

1. Family Home Guarantee

The new Family Home Guarantee recognises that the challenge of saving a deposit can be even harder when you’re on a single income while raising children.

In response, the Family Home Guarantee will assist 10,000 sole parents to build a new home or purchase an existing home with a deposit of just 2 per cent.

The Family Home Guarantee is intended to help single parents with dependants, regardless of whether that single parent is a first home buyer or previous owner-occupier.

Applicants must be Australian citizens, at least 18 years of age and have an annual taxable income of no more than $125,000.

Eligibility is also subject to the individual’s capacity to secure a home loan.

2. First Home Super Saver Scheme

As part of the 2021-22 Budget, the Federal Government has raised the First Home Super Saver Scheme limit from $30,000 to $50,000. This scheme allows first home buyers to make deposits to their super accounts for withdrawal later to buy an owner-occupied home.

Under this scheme, first home buyers can make voluntary concessional (taxed at a discounted rate of 15%) and non-concessional (already taxed at your marginal rate) contributions into their super fund which can later be withdrawn for a deposit on a first home.

This voluntary release from $30,000 to $50,000 of your concessional and non-concessional super contribution to put towards your deposit is expected to be available from 1 July 2022.

3. First Home Loan Deposit Scheme

Under the 2021-22 Budget, the Australian Government announced the extension of the First Home Loan Deposit Scheme (FHLDS) to support eligible first home buyers to build or purchase their first home sooner.

Under FHLDS, first home buyers can purchase an existing home or build a new home with a deposit as little as 5 per cent, with the government acting as guarantor for the outstanding balance of 15 per cent.

Eligible borrowers can use the guarantee in conjunction with other government programs like the First Home Super Saver Scheme, HomeBuilder Grant or state and territory First Home Owner Grants and stamp duty concessions.

10,000 FHLDS places will be available for the 2021-22 financial year from 1 July 2021.

4. New Home Guarantee

Similar to the First Home Loan Deposit Scheme (FHLDS), the New Home Guarantee scheme helps first home buyers build or purchase a new home with a deposit as low as 5 per cent. But that means existing properties are not eligible under this scheme.

Only newly constructed dwellings, off-the-plan dwellings, house and land packages, or land and a separate contract to build a new home will be accepted under this scheme.

Eligible borrowers can use the guarantee in conjunction with other government programs like the First Home Super Saver Scheme, HomeBuilder Grant or state and territory First Home Owner Grants and stamp duty concessions.

From 1 July 2021, under the New Home Guarantee, there will be 10,000 places available for first home buyers seeking to build a new home or purchase a newly built home with a deposit as low as 5 per cent.

5. HomeBuilder

The HomeBuilder program provides eligible owner-occupiers (including first home buyers) with a $25,000 grant to build a new home or substantially renovate an existing home.

HomeBuilder assists the residential construction market by encouraging the commencement of new home builds and renovations.

Under the Budget announcement, the construction period for existing applicants under the $25,000 HomeBuilder Grant has been extended to 18 months.

The HomeBuilder grant can be used with existing state grants like First Home Owners Grant and even the First Home Loan Deposit Scheme if you’re an eligible first home buyer.

Of course, while the $25,000 Home Builder Grant is a huge help to those looking to build or renovate, there are still price and income caps and eligibility requirements to meet.

How can we help?

There are a number of new and existing government schemes available both at the national and state level to support you with your home ownership goals.

Before you apply, you will want to check that you’re eligible for the government grant or scheme you’re applying for. Each program has different eligibility requirements, so it’s important to tick all the boxes prior to submitting your application.

If you’re planning on utilising any of the latest grants or schemes announced in the 2021-22 Budget, you can have a discussion with your broker or lender upfront, before submitting your application.

An Aussie Broker can also provide you with information on what government grants or schemes you could be eligible for, help you with your application, find you a great deal on a home loan, and help you through settlement and beyond.

Book an appointment today to get started.

Speak to an Aussie Broker 

Keep learning with Aussie

What is the First Home Owner Grant?

You may be eligible for financial help from the government for your first home.
Read more

10 steps to your first home

Follow these 10 steps to getting your first home loan.
Read more