Average loan size jumps 16.4%

An extra 4,651 first home buyers will be able to access federal government assistance during the 2021-22 financial year.

The government had originally pledged to support 20,000 first home buyers this year – 10,000 under the First Home Loan Deposit Scheme and 10,000 under the New Home Guarantee.

Now, the government has added an extra 4,651 places, which went unused during the 2020-21 financial year.

The First Home Loan Deposit Scheme lets eligible first home buyers purchase a home with just a 5% deposit, without having to pay lender’s mortgage insurance.

The New Home Guarantee is almost identical, except it applies to new builds, off-the-plan properties and house-and-land packages.

The government hasn’t stipulated where the extra 4,651 places will be allocated, but it seems likely they will be spread over both programs, based on demand.