First home buyers will be granted more help to enter the property ladder in a federal budget boost offering loan guarantees and more scope for people to use their superannuation to save a deposit - helping many enter the booming housing market.
Treasurer Josh Frydenberg announced that first home buyers will be able to release $50,000 as part of voluntary contributions into their superannuation under the First Home Super Saver Scheme. This is an increase from $30,000 to recognise the rise in house prices since the scheme began four years ago.
Real estate Institute of Australia (REIA) President, Adrian Kelly said, “expansion of this scheme has been a long standing REIA priority since it was first introduced and is a good taxation incentive which will help more first home buyers enter the market.”
The First Home Loan Deposit Scheme (New Homes), rebranded as the New Home Guarantee, has an additional 10,000 places, allowing first home buyers to build a new home or buy a newly built home with as little as 5% deposit, with the government acting as guarantor on the loan - freeing the buyer from incurring lenders’ mortgage insurance.
Mr. Frydenberg said support for families and home ownership were key objectives in the budget when owner-occupier mortgages were dominating loan approvals. With the HomeBuilder scheme coming to an end, halting grants of up to $25,000 for renovations and new construction after more than 120,000 applications since last year, Mr. Frydenberg said he wanted other ways to help some owners.
“That’s been enormously successful and the number of first home buyers in the housing market is at the highest level in more than a decade,” he said in an interview with The Age and The Sydney Morning Herald.
“These programs are designed to achieve greater home ownership, including higher numbers of first time buyers.”