No, no, no, no, no.
There are renters out there hurting and no relief is in sight.
The New Home Guarantee is good in a way, as it allows first home buyers to buy their first home without the burden of Lenders Mortgage Insurance (LMI). The one-off premium is in the $8,000-12,000 range. LMI is an insurance policy that the banks take out which underwrites losses if the bank needs to foreclose and they suffer a loss on a mortgagee sale.
It means that they can borrow 95% without having to pay LMI. Indeed single parents can do the same with only 2% deposit.
BUT it is not available to existing dwellings, only new.
The New Home Guarantee (NHG) is no longer available for new applications from 1 July 2022. A NHG place reserved on, or before 30 June 2022, will still be able to progress to settlement.
www.nhfic.gov.au
Eligible New Home Guarantee properties include
- newly-constructed dwellings
- off-the-plan dwellings
- house and land packages
- land and a separate contract to build a new home
Use the
postcode search tool to look up the property price caps for your location.
Also the postcode tool ^^^ demonstrates that it's very difficult to find a new home under the required threshold.