HGS Trends and Insights Report 2022–23

The National Housing Finance and Investment Corporation (NHFIC) today released its fourth annual Home Guarantee Scheme (HGS) Trends & Insights Report, covering data on the First Home Guarantee (FHBG), Family Home Guarantee (FHG) and Regional First Home Buyer Guarantee (RFHBG) for 2022-23.

The report includes data insights during a challenging period for first home buyers with the rapid increase in interest rates impacting on housing affordability. 

Key insights from the report include:

  • The Scheme's share of the First Home Buyer market has grown significantly. Across Australia, close to 1 in 3 first home buyers in 2022-23 were supported by the Scheme, a significant increase from the 1 in 7 during 2021-22.
  • The number of guarantees issued in 2022-23 increased materially, supporting around 41,700 Australians into home ownership (up from 32,500 in 2021-22) following the Government's expansion in the number of places available in the Scheme.
  • The new RFHBG, launched in October 2022 , helped more buyers in regional areas into home ownership. Around 10,860 or more than one third of all HGS guarantees were issued to buyers in regional areas in 2022-23 up from around 7,390 in 2021-22.
  • An increasing proportion of younger buyers have participated in the Scheme each year since inception. More than half of all places under the FHBG and RFHBG in 2022-23 were taken up by people under the age of 30, up from around a third in 2019-20, the first year the Scheme was in operation. Interest from first home buyers aged 18-24 has risen substantially to around 14% of all purchases in the FHBG in 2022-23, up from 3% in 2019-20.
  • The Scheme is helping a growing number of key workers purchase a home. Around 7,721 guarantees were issued to key workers in 2022-23, up 37% from 5,650 in 2021-22. In 2022-23, more than 1 in 4 of all guarantees under the FHBG were issued to key workers such as teachers, nurses and social workers. 
  • More than 9,700 households (just over 12% of total guarantees issued to date) have already transitioned out of the Scheme, with most of these buyers having accumulated enough equity to achieve a Loan to Value ration (LVR) of less than 80% and therefore no longer requiring a guarantee. This demonstrates the temporary nature of support offered through the HGS with the Scheme acting as a gateway to home ownership.
  • Arrears under the Scheme remain low (less than 0.1%) and below broader market benchmarks for high LVR lending. Given the macroeconomic environment, in the coming year, arrears may rise in line with trends in the broader homeloan market.