The federal government will increase the price cap applied to properties in regional Tasmania under its Family Home Guarantee, in what's been described as a win for single parent families looking to buy in Northern Tasmania.
From July 1, an additional 30,000 places will be released to eligible applicants under the First Home Loan Deposit Scheme, the temporary New Home Guarantee program, and the Family Home Guarantee.
The government has also announced a new property price cap of $400,000 for regional Tasmania for both the First Home Loan Deposit Scheme and Family Home Guarantee, from July 1.
Currently, both schemes are capped at $300,000 for regional Tasmania - an amount that's attracted criticism from the opposition and industry professionals as being unattainable in a regional city like Launceston.
Last month there were only a handful of houses with three bedrooms or more available for sale in Launceston for under $300,000.
In announcing the changes, Bass Liberal MHR Bridget Archer said it would offer people more choice in an increasingly competitive housing market.
"As I have said previously, the housing market, particularly in the Launceston area, has become more competitive for anyone looking to buy over the past 12 months," she said.
"The increase of the cap will allow those looking to utilise the Family Home Guarantee to have more choice in the current market."
Announced as part of the 2021-22 federal budget, the Family Home Guarantee aims to support single parents with dependents, subject to the passage of legislation.
Starting July 1, 10,000 guarantees will be made available to eligible single parent families to build a new home or purchase an existing home with a deposit of as little as 2 per cent.
Assistant Treasurer and Housing Minister Michael Sukkar said the new places would assist Australians in achieving the aspiration of home ownership.
"We know how difficult it can be to buy a new home or re-enter the housing market, and that saving a deposit is the hardest part of getting into home ownership," he said.
"That's why the Morrison government has established the new Family Home Guarantee, which recognises the challenge of saving for a deposit is that much more difficult when you are a single parent with children.
"By supporting single parents and their children, we are helping them achieve the security and dignity that home ownership provides."
Mr Sukkar said now was the time for potential applicants to contact a participating bank or mortgage provider to get their applications underway.
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