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With the release of 40,000 new places in the government’s Home Guarantee Scheme announced today (1 July), NAB has painted a picture of the average Aussie to benefit from the scheme.
Aussies aged under 30 and those who are planning to get on the property ladder solo are the biggest winners in first home buyer schemes by the government, per the bank’s data.
According to NAB executive home ownership Andy Kerr, both younger and solo buyers are getting a foot on the property ladder sooner than later, thanks to the scheme.
“People going at it alone shouldn’t be disadvantaged and we are seeing the scheme help them buy a property,” Mr Kerr said.
Data from NAB showed that 63 per cent of properties in the scheme were taken up by solo buyers in the last six months. The figures are significantly higher than the 49 per cent of non-scheme purchases.
Of the 63 per cent of First Home Guarantee single mortgage holders, 59 per cent were female and 41 per cent were male.
A deeper look into the data showed that 21 per cent of NAB customers eligible for the First Home Guarantee (FHG) are aged under 30, compared to 17 per cent of non-FHG buyers.
“With a backdrop of house price growth slowing and in Sydney and Melbourne where it is going backwards, there is some relief in sight for first home buyers,” Mr Kerr stated.
The NAB executive also noted that flexible work set-ups are giving first home buyers more options for locations than ever before, highlighting that regional purchases in the scheme are up 2 per cent compared to the same period last year.
He added: “In an uncertain market, it has never been more important to have the confidence to buy. Getting a fast decision from your bank on a loan is absolutely crucial,” indicating that around half of eligible customers can now get a decision on their application within 24 hours.
The federal government’s Home Guarantee Scheme (formerly known as the First Home Loan Deposit Scheme) allows eligible first home buyers to purchase a property with a deposit as small as 5 per cent — and eligible single parents with a deposit as small as 2 per cent.
The government guarantees the remaining amount of 15 per cent and 18 per cent of the property price, respectively, avoiding the need for lenders mortgage insurance (LMI).
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