This article is from the Australian Property Journal archive
LENDER Westpac’s St. George, Bank of Melbourne and BankSA have all joined the list of lenders authorised to offer the Australian Government’s Home Guarantee Scheme (HGS), which allows eligible home buyers to purchase a home with deposits of as little as 2% and 5%, without paying lender’s mortgage insurance.
The Family Home Guarantee offers home buying on deposits of 2% and the First Home Guarantee and Regional First Home Buyer Guarantee both 5%.
Despite higher interest rates, and cost-of-living and affordability challenges, Westpac’s latest Home Ownership Report showed that one in five Australians are planning to buy a first home in the next five years, which is broadly in line with figures from late 2020, when interest rates were at historic lows.
This trend is largely being driven by Gen Z. Amongst this group, 44% intend to achieve home ownership in the next five years, with Millennials at 32%, Gen X at 14% and Baby Boomers at 2%. And 11% of Gen Z’s plan to buy in the next 12 months, more than double the national figure of 5%.
“It’s encouraging to see that despite the higher cost of living and other affordability challenges, younger Australians are still the most driven in wanting to purchase a home and are taking steps to prioritise this goal,” said Westpac managing director of mortgages, Richard Burton said.
“Through expanding access to the Home Guarantee Scheme, St.George, Bank of Melbourne and BankSA will be able to help more Australians into the property market sooner with a smaller deposit,” he said.
The share of Australian first home buyers utilising the Home Guarantee Scheme has more than doubled amid difficult market conditions. Data from the NHFIC shows nearly one-in-three first home buyers over 2022-23 were supported by the scheme, a significant increase from one-in-seven over 2021-22.
