Back to Inspire Home

How the 2021 budget will affect property buyers

This year’s federal budget brings good news for prospective homeowners, with a series of new and extended measures designed to help people enter into the property market. Keep reading for our breakdown of what the federal government has included in the budget for homebuyers.

Free E-Book: How to buy a house in 9 steps

A guide to deposits, pre-approval, & choosing the right property.

Download now

A new Family Home Guarantee for single parents wanting to buy

The newest scheme targeted at home ownership is the Family Home Guarantee, a measure specifically for single parents with dependents wanting to get into the housing market. The scheme gives 10,000 single parents the opportunity to build a new home or purchase an existing home with a deposit as little as 2%, without paying Lenders Mortgage Insurance (LMI). Under the Family Home Guarantee, the government will guarantee up to a maximum of 18% of the home’s purchase price.

The scheme is part of a number of measures in Tuesday’s budget aimed at helping women’s economic security, with the majority of single parents in Australia being women. The scheme is also not limited to first home buyers, meaning single parents who have previously owned a home are eligible.

To be eligible for the Family Home Guarantee, applicants must be Australian citizens, over the age of 18 and have an annual taxable income not exceeding $125,000.

Extension of the HomeBuilder scheme for new builds and renovations

The construction commencement period for existing applicants to the HomeBuilder scheme has been extended by 12 months under this year’s federal budget. Introduced as part of last year’s budget, HomeBuilder offered $25,000 grants to build a new home or renovate, with a minimum spend of $150,000 required to be eligible.

The program stipulated that construction on the new build or renovation must commence within 6 months of the contract date, but this has now been extended to 18 months.

Applications for HomeBuilder have now closed, meaning this extension is for existing applicants only.

Thinking of renovating your property?

Find a great cash out rate in seconds.

Find a rate now

First home buyers boosted with New Home Guarantee extension

10,000 extra places will be added to the New Home Guarantee for 2021/2022 as part of a boost for first home buyers wanting to get into the housing market. The guarantee was introduced in last year’s federal budget to help first home buyers purchase a new home with a deposit as low as 5%.

Eligible first home buyers must purchase a newly built property or build a new home to access the guarantee, meaning existing properties are excluded.

Increased help for first home buyers under First Home Super Saver Scheme

Eligible first home buyers can now release up to $50,000 in voluntary super contributions to put towards a deposit for a home, which is an increase from the $30,000 limit under the First Home Super Saver Scheme. The scheme excludes super payments made by your employer or spouse.

The First Home Super Saver Scheme helps borrowers save money to grow a home deposit by using their superannuation fund. Borrowers get to benefit from the lower rate of tax applied to their super account.

Get a free property report in seconds

Search an address for price estimates and sales history.

Search a property

Tax cuts for low and middle income earners extended

The Low and Middle Income Tax offset introduced in last year’s budget has been extended for another 12 months under the 2021 federal budget. For prospective home buyers, these tax cuts could contribute to your deposit or your future home repayments.

See the table below for an idea of how much you could save:

WageOffset
$37,000 or less$225
$37,001 to $48,000$255 plus 7.5 cents for every $1 above $37,000 (up to a max of $1,080)
$48,001 to $90,000$1,080
$90,001 to $126,000$1,080 minus 3 cents for every $1 of the amount above $90,000

If you’re looking to buy a home and you have questions about what government schemes and grants you could be eligible for, feel free to speak with a Lendi Home Loan Specialist at a time that suits you.

What could your home loan repayments look like?

Calculate your loan repayments

$
%
years

Got a home loan question? Just ask!

We're here to help. Get free expert advice at a time that suits you. Choose a time to chat with a Home Loan Specialist here

The information in this post is general in nature and should not be considered personal or financial advice. You should always seek professional advice or assistance before making any financial decisions.

Tags: home loan, investing, investment, investment loan, investment property, first home, first home buyer, new purchase

Check today's low rates

Tell us what you are looking for and see if you can save.

Search rates

Check today's low rates

Tell us what you are looking for and see if you can save.

Search rates
Home loan repayment saver tool

Home loan repayment saver tool

Enter a few details about your home loan and see how much you could save on your repayments

Important legal stuff

Lendi is the trading name of Lendi Pty Ltd (ACN 611 161 856), a related body corporate of Auscred Services Pty Ltd (ACN 164 638 171, Australian Credit Licence 442372). We will never sell your email address to any third party or send you nasty spam, promise.
# Quoted rate applies only to PAYG loans with LVR of 80% or less with security in non-remote areas. All applications are subject to assessment and lender approval.
Lendi is a privately owned and operated Australian business. Our mission is to change the way Australians get home loans by providing a faster, smarter and more secure home loan experience designed around the customer’s convenience and needs. Although Lendi compares over 1600 products (2,500+ products including feature and pricing variations) from more than 35 lenders, we don't cover the whole market or compare all features and there may be other features or options available to you. While Lendi is 35% owned by founders and employees, we have also been supported by some great minority shareholders including Bailador, Macquarie Bank Ltd and a number of Australian sophisticated investors.
*WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. The comparison rates are based on a loan amount of $150,000 over a loan term of 25 years. Fees and charges apply. All applications are subject to assessment and lender approval. Quoted rate applies only to PAYG loans with LVR of 80% or less with security in non-remote areas. All applications are subject to assessment and lender approval.
IMPORTANT INFORMATION: Loan terms of between 1 Year and 40 Years are available subject to lender and credit criteria. Maximum comparison rate will not exceed 14.99% (see comparison rate warning above). Any calculations or estimated savings do not constitute an offer of credit or a credit quote and are only an estimate of what you may be able to achieve based on the accuracy of the information provided. It doesn't take into account any product features or any applicable fees. Our lending criteria and the basis upon which we assess what you can afford may change at any time without notice. Savings shown are based on user inputted data and a loan term of 30 years. All applications for credit are subject to lender credit approval criteria.
Made with love at Circular Quay in Sydney, Australia. © 2021. All rights reserved.