With property prices skyrocketing across the country, housing affordability is expected to be a key election issue. The Morrison Government recently handed down its federal budget for the new financial year - with homeownership one of the major focuses.
“Helping more Australians to own a home is part of our plan for a stronger future.”
Treasurer Josh Frydenberg
Homeownership is one of the major focuses of the budget; Treasurer Josh Frydenberg said, “Homeownership is fundamental to the Coalition. HomeBuilder, the First Home Super Saver Scheme and the Home Guarantee Scheme have helped make the dream of homeownership a reality”
“Over the last year, 160,000 Australians purchased their first home. Tonight we go further, more than doubling the Home Guarantee Scheme to 50,000 places per year.” The Government has dedicated $8.6 million over the four years from 2022-23 to more than doubling the total number of places under the Home Guarantee Scheme to 50,000 places a year.
There will also be 35,000 guarantees available per year for the First Home Guarantee (previously the First Home Loan Deposit Scheme), up from the current 10,000. For those who qualify, it guarantees up to 15% of a loan’s value, meaning buyers can secure a home loan with a 5% deposit - allowing borrowers to skip lenders’ mortgage insurance (LMI).
The Budget will also expand a category for single parents introduced in the 2021 budget, allowing some to buy a property with a 2% deposit, increasing the cap to 5,000 a year.
“In this Budget, we are also increasing our support for affordable housing by $2 billion through the National Housing Finance and Investment Corporation.”
Share this article
Sign up for new article alerts
Receive every new listing in your inbox
