HA - 5% Deposit Scheme

Question

1. Since its commencement, how many individual home loan guarantees have been issued under the 5% deposit scheme (previously known as the Home Guarantee Scheme). Please provide a total and a breakdown by individual months. 2. What is the current total maximum contingent liability or guarantee exposure borne by the Commonwealth under the Home Guarantee Scheme? 3. What is the total value of home loans that have been guaranteed under the Home Guarantee Scheme since its commencement? Please provide a breakdown by financial year, and a year-to-date number for the current year. 4. Please provide a breakdown by number and value of home guarantee scheme loans provided by each participating lender. 5. How many individuals have accessed the Home Guarantee Scheme since its commencement? Please provide a breakdown by citizenship status. 6. For all non-Australian citizens who have accessed the Home Guarantee Scheme, please provide a breakdown by country of citizenship, including the number of guarantees issued to citizens of each country. 7. For all non-Australian citizens who have accessed the Home Guarantee Scheme, please provide a breakdown by visa category held at the time the guarantee was issued, including the number of guarantees issued to individuals under each visa category. 8. Are applicants who are not Australian citizens eligible to access the Home Guarantee Scheme if they currently own, or have previously owned, residential property outside Australia? 9. What verification processes are undertaken to determine whether a non-citizen applicant currently owns, or has previously owned, residential property outside Australia? 10. Does the administering agency independently verify declarations relating to overseas property ownership of non-citizen applicants? If so, please detail the verification process. 11. Since commencement of the Home Guarantee Scheme, how many guaranteed loans have entered arrears or defaulted? Please provide a breakdown of the number of loans by month. 12. Since commencement of the Home Guarantee Scheme, how many guarantees have resulted in a claim against the Commonwealth guarantee? Please provide the total value of claims paid and a breakdown by month. 13. Since commencement of the Home Guarantee Scheme, what is the total amount paid by the Commonwealth in relation to claims arising under the Home Guarantee Scheme? 14. The requirement to save a 20% deposit to achieve a lower interest rate and avoid paying lender's mortgage insurance has historically functioned as a mechanism to limit borrowings and house price growth. What modelling has been completed to quantify the impact on house prices as a result of this 5% deposit scheme? Has any follow-up modelling or analysis been completed since the commencement of the scheme? 15. If an applicant has a 20% deposit, but wishes to retain some funds and rely upon the 5% deposit scheme to guarantee their loan, what is the maximum amount/percentage they are allowed to retain? 16. The website for the 5% deposit scheme states: ''We've already helped over 248,000 Australians since the Scheme commenced''. Are all 248,000 Australian Citizens? If not, please provide a breakdown of nationality of these 248,000 individuals. https://firsthomebuyers.gov.au/australian-government-5-percent-deposit-scheme 17. There are now no income caps for the 5% deposit scheme. Please provide a breakdown of all successful scheme applicants by household income level. Please categorise by $10,000 increments. Please provide all data for the dates since the income cap was lifted. 18. What is the highest household/application taxable income recorded in a successful 5% deposit scheme application? 19. The scheme allows for deposits as low as 5% (+ fees). Please provide a breakdown for all successful applicants which details the percentage deposit provided (after fees). Please list the number of guarantees for each percentage point (5%, 6%, 7%...19%). It may be easier to present by Loan LVR (81%, 82%....95%). 20. What verification methods are used to ensure that applicants genuinely occupy their homes that are purchased under the guarantee? Have any cases of fraud been identified? If so, please advise how many and if these applicants were able to refinance under standard policy? What time do these individuals have to refinance or sell their property?

Answer

See attached response.

Documents

• Question with answer (PDF) (opens in a new tab)
• SQ26-000222 HA - 5- Deposit Scheme.pdf (opens in a new tab)