Mackay #1 in Australia for Home Guarantee Scheme purchases

Mackay has topped the list of Australian postcodes for first-home buyers using the Home Guarantee Scheme.

The Home Guarantee Scheme is a federal government initiative to help first-home buyers get onto the property ladder by purchasing a property with as little as a five per cent deposit and without Lenders Mortgage Insurance (LMI).

Through the scheme, the Australian government acts as a guarantor for up to 15 per cent of the home loan.

>> READ MORE: WHO THE HELP TO BUY SCHEME WILL ASSIST

In 22-23, close to one in three of all first-home buyers were supported by the scheme with a total of 32,500 guarantees issued, supporting more than 41,700 Australians to purchase a home, according to Housing Australia.

And Mackay, with 286 guarantees, topped the list of postcodes nationally.

Mackay was followed by Armadale, WA with 219 guarantees, Beenleigh, Qld with 216 guarantees and East Toowoomba, Qld with 202 guarantees.

Qld and WA continue to experience the strongest demand for the scheme.

>> READ MORE: HOME GUARANTEE SCHEME ELIGIBILITY CRITERIA EXPANDED

According to Housing Australia, Qld had the “highest concentration of guarantees out of all the states and territories in 2022–23, with around 25 per cent of all FHBGs, compared with a population share of 20 per cent and overall first home buyer lending share of 21 per cent.”

The average purchase price under the FHBG was around $459,000 for singles and $582,000 for couples.

In Queensland, those using the scheme paid an average of $400,245 even though the median property value is $622,000, said realestate.com.au.

According to Housing Australia, buyers supported by the scheme prefer larger family-sized homes, with 68 per cent of purchases being homes with three or more bedrooms.