The data a data from CommBank and the National Housing Finance and Investment Corporation (NHFIC) showed that the average equity gain of each Home Guarantee Scheme (HGS) participant was estimated to be around $82,000 since 2020.
Meanwhile, the scheme continues to support people on modest incomes — participants of the scheme have an average annual household of $108,000, compared to the $117,000 for the broader first-home buyer market.
Further, the deposits of home buyers under the HGS increased only marginally, from $35,200 to $36,400.
On the other hand, average deposits in the overall first-home buyer market rose almost 50% from $108,400 to $159,000.
NHFIC head of research Hugh Hartigan said these data show that first-home buyers are in good position despite the rate rises and the recent market downturn.
“Despite the challenging interest rate environment and dwelling price falls last year, it is encouraging that the average equity position of Home Guarantee Scheme participants appears to be holding up,” he said.
“It is also interesting that deposits for first-home buyers outside of the HGS have risen so strongly, which may indicate they have other ways of supplementing their savings.”
This is despite data from mortgage brokers Lendi showing that those on the deposit scheme were more likely to be trapped in a mortgage prison and struggling with rising rates.
HGS participants were more likely to take out a smaller loan relative to income compared with the broader market according to the NHFIC data.
Lendi data on the other hand shows about one-in-six (17%) of first home buyers took out loans worth more than $814,000.
The average loan amount under HGS has increased 4.7% since 2020 while the average loan for the broader first home buyer market increased by 13.4%.
In terms of demographics, the deposit scheme continues to support more women as a proportion of single borrowers, particularly those who are single with dependents under the Family Home Guarantee.
NHFIC data released in June 2023 showed that the scheme has already helped 100,000 Australians purchase or build a new home.
Around a fifth of all those who qualified and used the scheme were key workers, including 6,700 teachers, 5,000 nurses, and almost 3,500 social workers. Around 34,000 guarantees were provided to regional Australians.
Photo by Jae Young Ju on Canva.
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