Hundreds of first homebuyers on the Central Coast are expected to benefit from the Federal Government’s 5% deposit scheme, set to be launched earlier than expected on October 1.
Central Coast Federal MPs Dr Gordon Reid (Robertson), Emma McBride (Dobell) and Pat Conroy (Shortland) said the Australian Government would guarantee a portion of a first homebuyer’s home loan, so they could purchase with a lower deposit and not pay lenders mortgage insurance.
Under the changes, all first homebuyers would have access, with no caps on places or income limits.
Property price caps will also be set higher in line with average house prices, providing access to a greater variety of homes.
For the average first homebuyer, access to the scheme cuts years off the time it takes to save for a deposit and saves tens of thousands of dollars on lenders mortgage insurance.
In just the first year alone, first homebuyers using the scheme are expected to avoid about $1.5B in potential mortgage insurance costs.
The median home price in Australia today is $844,000, with 5% being $42,200.
The last time $42,200 covered the 20% deposit for a median home price was in 2002.
After consulting with industry, the government will also direct Housing Australia to promote the diversity of lenders who offer the scheme, giving first homebuyers greater choice to buy a home through smaller, customer-owned and regional banks.
Conroy said the scheme was another step in making owning a home possible for everyone.
“Our aim is to give people in Lake Macquarie and the Central Coast practical support and real pathways into home ownership,” he said.
“This is about making sure all Australians get a fair go when it comes to housing.”
McBride said many people and families on the Central Coast had spent years saving to buy their first home.
“Expanding our scheme so that everyone is eligible to purchase a home with a 5% deposit will mean more locals can achieve their dream of home ownership sooner,” she said.
Reid said the Federal Government was delivering on its commitment to make housing affordability more accessible for first homebuyers.
“I know that there will be thousands of Australians on the Central Coast who will take advantage of this scheme,” he said.
For more information on the 5% deposit scheme, go to the Housing Australia website.
Just what we need. Another federal policy to make housing more expensive.
Anyone ever wonder why we always see these sorts of policies every time it looks like property values might fall?
The simplest way to make housing more affordable is to eliminate the tax benefits of ownership from high income earners such as Gordon Reid and Emma McBride, both of whom own investment properties and are directly contributing to the affordability issue. But it’s not just a problem with our Federal MP’s it’s state as well, with the member for Gosford (Leisl Tesch) being a prolific property owner as well as our local Senator Deborah O’Neill and her collection of 4 investment properties.