Prime Minister Anthony Albanese today said the fast-tracking of a government-supported first-home buyer scheme will help give more people a “fair crack” at entering the housing market.
The government guarantor scheme, enabling people to purchase their first home with a 5 per cent deposit, will now begin on October 1, instead of January 1.
Another 15 per cent of the purchase price is guaranteed by the federal government, ensuring the applicant doesn’t pay lender’s mortgage insurance.
Research shows that this might save young people about eight years of saving, helping them enter the housing market.
The expansion of the scheme will also scrap the yearly cap on the number of first-home buyers and single parents who have mortgages guaranteed by the government.
So from October 1, all first home buyers can access the scheme, regardless of income.
Property price caps are also being raised as part of the changes.
They still vary state by state, but first home buyers can now access this scheme when they’re buying a property as high as $1.5 million in Sydney, and $1 million in Brisbane and Canberra.
The Treasury has warned the scheme risks spiking house prices.
Albanese said today supply was the key issue and he wanted people to have a “fair crack” at getting a foothold on the housing ladder.
Housing Minister Claire O’Neil told Today this morning the expansion of the scheme was part of the government’s strategy of combatting the housing crisis, but acknowledged more work was needed.
“We’re about a year into a five-year target and there’s no question that we’re going to have to do more,” she said Today.
“I can tell you we are leaving no stone unturned here. We are doing everything we can.”
Yesterday the government announced a halt to the National Construction Code, enabling builders to work quicker.
