Australian taxpayers have helped nearly 50,000 migrants purchase new homes since mid-2023 under just one generous scheme available to non-citizens.<\/p>\n
A viral social media post over the weekend has reignited debate online over whether the taxpayer-funded grants should be restricted to Australian citizens only.<\/p>\n
\u201cHi everyone, we\u2019re expecting to receive our Subclass 191 PR soon,\u201d an anonymous user posted in the Property Forum Australia Facebook group.<\/p>\n
\u201cWe currently have around $200,000 in savings and are both working full-time with a combined annual income of about $180,000. Our plan is to first purchase a new home using the First Homeowner Grant, and then, 3-6 months later, but an investment property. We just wanted to check whether this strategy is realistic and achievable with our current income and savings.\u201d<\/p>\n
MORE: \u2018Flipped\u2019: Next Aus migration hotspot exposed<\/a><\/p>\n An image of the post went viral on X after being shared by user Nath Sparky, who wrote, \u201cNew migrants don\u2019t push up demand of house prices \u2026 oh wait.\u201d<\/p>\n Permanent residents in Australia can access a range of first homeowner grants.<\/p>\n The First Home Owner Grant (FHOG) Scheme, introduced in July 2000 to offset the effect of the GST on home ownership, is a one-off $10,000 grant<\/a> that has been available to both Australian citizens and permanent residents since it launched.<\/p>\n The national scheme is funded and administered by each state and territory under their own legislation, but no publicly available data exists on how many non-citizens have accessed the FHOG.<\/p>\n Last financial year<\/a>, NSW paid 972 First Home Owner Grants worth a total of $9.74 million, according to Revenue NSW.<\/p>\n MORE:Sad update on what to expect in Aus in 2027<\/a><\/p>\n Meanwhile the federal government\u2019s 5% Deposit Scheme<\/a>, first introduced in 2020 as the First Home Loan Deposit Scheme, expanded eligibility to permanent residents in mid-2023, sparking a flood of applications.<\/p>\n As of this month, more than 48,000 permanent residents have used<\/a> the scheme \u2014 or nearly one in five of the total since its inception.<\/p>\n Under the scheme, administered by Housing Australia, the government acts as a guarantor for the remaining 15 per cent of the deposit, allowing the first homebuyer to avoid paying lenders mortgage insurance (LMI) while remaining responsible for all costs and loan repayments.<\/p>\n The 2% Deposit Scheme<\/a>, offered to single parents or legal guardians, is also offered to permanent residents.<\/p>\n However only Australian citizens are eligible for Help to Buy, a shared equity scheme which sees the federal government contribute up to 40 per cent of the cost of a new home and 30 per cent of an existing home.<\/p>\n Last week, Housing Australia announced that since eligibility for the 5% Deposit Scheme was expanded in mid-2023 to include permanent residents and joint applicants, \u201cmore than 48,000 permanent residents have been supported, along with over 2700 family and friend group applicants purchasing a home together \u2014 demonstrating the Scheme\u2019s responsiveness to the needs of modern households\u201d.<\/p>\n Access to the scheme was further expanded in October through the removal of income caps, increased property price caps and the introduction of unlimited places.<\/p>\n \u201cThis represents a significant milestone for Housing Australia and the Australian government 5% Deposit Scheme,\u201d Housing Australia chief executive Scott Langford said in a statement last week. <\/p>\n \u201cWorking closely with Participating Lenders, the Housing Australia team has successfully scaled the Scheme from 10,000 places in its first year in 2020, to supporting more than 300,000 Australians today to take this important step towards the security of home ownership.\u201d<\/p>\n Housing Australia said since 2020, the scheme had resulted in close to 30,000 new homes built, contributing to Australia\u2019s housing supply.<\/p>\n Emma Jarman, executive leader of the 5% Deposit Scheme, said the agency was proud of the outcome.<\/p>\n \u201cOur very first participant in 2020 was a teacher purchasing their first home in regional NSW,\u201d she said. \u201cSince then, thousands more have been able to enter the housing market sooner \u2014 including the 300,000th and 300,001st participants, a young couple purchasing their first home in Sydney.\u201d<\/p>\n