A fifth of first home buyers who used the Federal Government’s low deposit loan guarantee to get into the market have already been able to transition out of the scheme.

More than 19,000 loans secured under the scheme have “graduated out” of it since its introduction in 2020. Housing Australia’s Trends & Insights Report for the past financial year also shows that 63% of those who use the scheme are ahead on their mortgages with only 0.1% of loans under the scheme in arrears.

Chief program officer of home ownership, Jennifer Chew, says the scheme has helped support thousands of eligible home buyers to enter the market. The analysis shows nationally a third of first home buyers (58,000 buyers) used the scheme in the past financial year.

Victorians are the biggest users of the scheme (28%) with the top national areas for home buyers the Melbourne suburbs of Hoppers Crossing, Craigieburn and Cardinia.
Queensland buyers accounted for 24% of users and Western Australia 15%.