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The Mortgage & Finance Association of Australia (MFAA) has lauded the Australian Government’s announcement of the Family Home Guarantee, a new measure designed to provide 10,000 guarantees to single parents, allowing them to purchase a home with a deposit of as little as 2%.
The government also announced the expansion of the New Home Guarantee for a second year, and will boost the maximum amount of voluntary contributions that can be released under the First Home Super Saver Scheme from $30,000 to $50,000.
Mike Felton, CEO of MFAA, said the association supported all measures targeted at helping Australian home buyers.
“For decades, the challenge for first-home buyers has been the accumulation of the sizeable, required deposit,” Felton said. “The New Home Guarantee addresses this in a practical way. Once Australians get into the market, they generally go from strength to strength whilst enjoying the security of homeownership, so we will always back measures that seek to assist people to get into their first home.”
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Felton also praised the Family Home Guarantee for addressing the “significant challenges” faced by single parents.
“We’re pleased that this policy is targeted towards some of those in our society who need it most, and that previous relationships or homeownership will not impact the ability to access the Family Home Guarantee,” he said. “Mortgage brokers have always been there to help new home buyers, those with more complex credit situations and those who are more vulnerable following life-changing events. These initiatives will continue to complement the work brokers do to help Australians access credit in a way that is convenient and which maintains strong competition in the Australian mortgage market.”
Felton said the mortgage broking industry was ready to assist prospective home buyers and consult on the implementation of the government programs if needed.
“The Family Home Guarantee will be administered by the National Housing Finance and Investment Corporation (NHFIC), which is appropriate,” he said. “We look forward to working with NHFIC on these targeted measures to help ensure the rollout reaches the people who really need it.”
Ryan Smith is currently an executive editor at Key Media, where he started as a journalist in 2013. He has since he worked his way up to managing editor and is now an executive editor. He edits content for several B2B publications across the U.S., Canada, Australia, and New Zealand. He also writes feature content for trade publications for the insurance and mortgage industries.
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