More first-time homebuyers have signed up for home warranty programs, with some states doubling in proportion from the previous fiscal year, new data shows.
The National Housing Finance and Investment Corporation (NHFIC) has revealed which states are seeing high uptake of government guarantee schemes.
The First home loan deposit system (FHLDS), New home warranty (NHG) and Family Home Guarantee (FHG) are federal government initiatives introduced by the Morrison government to help eligible homebuyers buy a home sooner.
Collectively, these initiatives are referred to as the First Home Loan Deposit Scheme (however, these initiatives were incorporated into the new Home Guarantee Scheme (HGS) after the Albanian government came to power).
The government initiative supported one in seven of all first-time home buyers across Australia, an increase from one in 10 last year, the NHFIC report showed.
According to the Third Annual Trends and Outlook Report of the First Home Loan Deposit Scheme (FHLDS), Queensland has seen the highest demand for the scheme.
The Sunshine State had the highest concentration of government guarantees, with around 29% of all FHLDS and 37% of all FHG guarantee recipients residing in Queensland. Warranties supported a fifth of new home buyers in the state last year.
While most states saw an increase in the number of first-time home buyers participating in these initiatives, WA and Tasmania were the only other two states to more than double in number.
The Northern Territory has seen the largest increase in the proportion of loans, with around 14% of first-time home buyers supported under the FHLDS or New Home Guarantee (NHG), more than four times that of 2020-21 .
Similarly, WAs more than doubled, from 7% to over 14%.
Conversely, fewer people in New South Wales have access to guarantees. Since 2019-20, NSW’s share of guarantees has fallen from around 34% to 26%.
In addition to having the largest proportion of total FHLDS commitments, QLD had the largest distribution of guarantees issued relative to population, at 29 percent.
About a fifth of all homebuyers have been supported through a program.
The state also had the highest distribution of FHG collateral, with 37% in the past fiscal year.
For supported buyers in the capital regions, properties sold for an average of $443,000 with average deposits paid at $30,000.
For regional areas, the average real estate price was $367,000, with $24,000 as the average deposit paid in the state.
Queensland’s top locations for home buyers were:
- Mackay, Isaac and Whitsunday
- Ipswich – Inland and Hinterland
- Gold Coast, Logan and Beaudesert
- Towsville (Burdell-Mount Low)
New South Wales
After QLD, NSW was the state with the largest collateral distribution – at 26%.
29% of FHLDS guarantees were for home buyers in NSW in 2021-22, according to the report.
A fifth of all NHGs were for NSW buyers, with a similar proportion taking the FHG.
The FHLDS supported 18% of all eligible first-time homeowners in the state in 2021-22, up from 13% the previous fiscal year.
The average property price for homes bought with collateral in New South Wales was $640,000 in the capital and $491,000 in the regions; the average deposit paid being $45,000 and $32,000 respectively.
The top locations by warranty count in the state were:
- Sydney – Outer South West (Cambelltown)
- Sydney – Blacktown (Schofields)
- Wagga Wagga
- Tamworth – Gunnedah
- Sydney – South West (Liverpool)
Victoria had the third-highest distribution of Collateral, at 23% last year.
Relative to population size, 24% of FHLDS collateral was distributed in Victoria and supported 12% of the state’s 25% population share, up from 8% in 2020-21.
The average property price for guaranteed homes averaged $553,000 in the capital and $419,000 in rural areas; the average deposits made were $41,000 and $29,000 respectively.
The top locations by number of guarantees in Victoria were:
- Melbourne – West (Tarneit – Truganina – Hoppers Crossing)
- Melbourne – South East (Casey – Cranbourne)
- Melbourne – North West (Craigieburn)
- Melbourne – South East (Pakenham)
- Melbourne – South East (Clyde)
Fourteen percent of collateral in 2021-22 went to home buyers in WA.
Additionally, the proportion of home buyers backed by collateral has more than doubled in WA over the past fiscal year, to 13%.
WA received 22% of all NHG guarantees and 17% of all FHG guarantees (compared to population).
The average property price for homebuyers in the previous fiscal year was $398,000 in the capital and $310,000 in the regions. The average deposit paid was $26,000 and $21,000 respectively.
The top locations by number of guarantees were:
- Perth – South East (Hilbert–Haynes–Armadale)
- Perth – South West (Baldivis)
- Perth – North East (Brabham–Henley Brook–Dayton)
- Perth – North East (Ellenbrook–Aveley
- Perth – South West (Hammond Park–Beeliar–Treeby–Success)
NHFIC discovered that 5% of a program’s collateral was being distributed to SA.
The proportion of South Australians under the scheme was 13% in 2021-22.
For capitals, the average property price under the FHLDS was $390,000, with an average down payment of $27,000.
The average price for a regional home was more than $100,000 lower, at $243,000 with an average down payment of $14,000.
The top locations for home buyers in the state were:
- Adelaide – Central and Hills (Mount Barker)
- Adelaide – North (Angle Vale)
- Adelaide – North (Munno Para)
- South Australia – South East (Mount Gambier)
- Adelaide – North (Andrews Farm – Craigmore)
The report found that one per cent of the collateral was distributed to Tasmanian home buyers and one per cent to the public.
Nine percent of all first-time homeowners in Tassie were backed by first-home purchase loan commitments in 2021-22, according to the report.
The average price of properties under warranty sold for $432,000 in the capital regions and $341,000 in the regions.
The average deposit paid was $32,000 and $22,000 respectively.
The most popular locations by number of guarantees in Tasmania were:
- West and North West (Acton)
- Southeast (New Norfolk)
- West and North West (Devonport)
- South East
- Launceston and North East (Waverley – Summerhill)
Australian Capital Territory
The ACT took just 2% of all scheme benefits in Australia, in addition to a 2% share of the population.
The proportion of first-time home buyers who benefited from a scheme in the ACT remained at 8% through 2021-22 and 2020-21.
One percent of FHLDS-supported homebuyers were in the ACT last year.
The largest locations by number of guarantees were:
- Belconnen (Belconnen-Bruce)
- North Canberra (Dickson)
- North Canberra (Braddon–Reid)
- Gungahlin (Taylor-Franklin-Casey
NT saw the biggest increase in the proportion of buyers supported by a scheme, with 14% first-time homeowners – up from 3% in 2020-21.
However, the NT, alongside Tasmania and the ACT, had the smallest breakdown of domestic FHLDS loans – 1% respectively.
The distribution of all HGS guarantees in NT was 2% in 2021-22.
The average home price for FHLDS buyers was $396,000, with an average down payment of $24,000.