URGENT UPDATE: First home buyers in Australia can now access a federal scheme that allows them to enter the property market with a deposit as low as 5% starting October 2023, a full three months ahead of schedule. This initiative is set to significantly ease the financial burden for those aspiring to own their first home.
The Australian Government announced that the scheme will expand to all first home buyers, eliminating previous participant caps. Prime Minister Anthony Albanese emphasized the importance of this policy, stating, “We want to help young people and first home buyers achieve the dream of home ownership sooner.” The new timeline aims to get more Australians into their homes faster while saving them money on costly lender’s mortgage insurance.
Under the scheme, the government will act as a guarantor, covering the remaining 15% of the deposit. For instance, a first home buyer looking at the national median property price of $844,000 will now only need a deposit of $42,200. In Sydney, where property values soar, a buyer will need $75,000 for homes priced at the maximum limit of $1.5 million.
The scheme is projected to benefit around 70,000 participants in its first year, adding 20,000 more than the current annual cap, according to Housing Minister Clare O’Neil. “The Albanese Labor government is stepping up to level the playing field and back a new generation of first home buyers into the housing market,” O’Neil stated. She highlighted the unfairness faced by young Australians who have struggled to enter the housing market while paying off others’ mortgages.
The earlier rollout also aligns with recent adjustments to the national construction code, which have been paused until 2029 (except for safety standards). This pause aims to expedite the construction of new homes, following a federal productivity roundtable that fast-tracked environmental approvals for over 26,000 homes.
As the housing market evolves, the impact of this government initiative will be closely monitored. First home buyers are encouraged to prepare for the October launch, which promises to reshape the landscape of home ownership in Australia.
Stay tuned for further updates as more details emerge about the scheme and its implementation. This is a pivotal moment for aspiring homeowners looking to make their dreams a reality!
