Since its launch in January 2020, the Home Guarantee Scheme (HGS), an initiative by the Australian government, has successfully aided more than 200,000 Australians in becoming homeowners, according to new statistics.
The scheme, which includes the First Home Guarantee (FHBG), the Family Home Guarantee (FHG), and the Regional First Home Buyer Guarantee (RFHBG), is designed to help eligible buyers, including first-time buyers, single parents, and regional participants, purchase homes with facilitated conditions.
The scheme has proved particularly beneficial for first-time buyers, with more than 193,000 individuals utilising it to secure their initial homes.
According to Housing Australia’s latest report, one in three first-time buyers participated in the scheme during 2023-2024.
Scott Langford (pictured above), CEO of Housing Australia, praised the collaborative effort.
“Together with our participating lenders and their accredited mortgage brokers, we celebrate this milestone which demonstrates the success of partnering to support eligible home buyers to purchase a home sooner,” Langford said.
More half of the participants are under the age of 30, with women also making up more than half of the home buyers.
The scheme has also had a significant impact on regional Australians, with more than 67,000 using it to buy homes outside major urban centers. Notably, nearly 30,000 of these used the RFHBG specifically.
Despite the scheme’s success, the construction industry faces challenges such as a declining number of building commencements and an increase in company insolvencies.
Kaytlin Ezzy, a CoreLogic economist, highlighted the difficulties.
“Outside of compressed margins and continued labour challenges, the construction industry is also facing a looming shrinkage in the construction pipeline,” Ezzy said.
In a heartwarming instance of the scheme’s impact, siblings Issy and Madi from Geelong leveraged the Home Guarantee Scheme to purchase their first home together.
After visiting their local NAB branch and discovering they could buy a home with just a 2% deposit, the sisters quickly moved into action, culminating in the purchase of a three-bedroom house in Leopold for $505,000.
Their success inspired their brothers, Jordan and Josh, who also bought a home nearby.
Nicole Butler, a NAB lender, highlighted the trend.
“Geelong has been booming – our data shows Geelong was the sixth most popular regional market for property purchases in 2024,” Butler said.
More on the Geelong siblings’ story here.
