The 2021 budget is here. It’s the second budget in just six months, following last year’s delayed COVID budget. It has a range of steps to support first-home buyers (FHBs), single-parent families and retirees.
Family Home Guarantee for 10,000 single parents
The government will introduce a new Family Home Guarantee from 1 July 2021 to support 10,000 eligible single parents with dependants by acting as a guarantor.
“The Family Home Guarantee is based on the successful First Home Loan Deposit Scheme and New Home Guarantee, which are helping more than 26,000 first-home buyers enter the housing market sooner,” the government said.
Whether you’re a first-home buyer or you already own a home, you may be able to build a new home or buy an existing one with a deposit of 2% without having to pay Lenders Mortgage Insurance (LMI).
New Home Guarantee expanded for a second year
The FHLDS (New Homes), also called the New Home Guarantee, will be expanded by a further 10,000 places. This will help first-home buyers buy a home or build a new one with a 5% deposit.
Maximum First Home Super Saver Scheme contributions will increase to $50,000
Earlier, you could contribute a maximum of $30,000 over two years voluntarily to save for a deposit.
From 1 July 2022, The government will increase the amount to $50,000 to help first-home buyers move into their dream home sooner.
Extending access to the downsizer scheme
From 1 July 2022, the downsizer scheme will offer Australians over 60 the opportunity to sell their home and downsize before putting that money into their superannuation. They’ll be able to contribute up to $300,000 ($600,000 per couple) into their superannuation if they downsize their home.
This particularly targets Australians who are asset rich and cash poor. They often live in tightly held areas and freeing up property in such places can help families and FHBs.
Feel free to reach out to myself or the team with questions.
Director of Pivotal Financial