Federal First Home Buyers Grant Putting Roofs Over Heads
Federal Member for Capricornia and Assistant Minister for Children and Families, Michelle Landry said the Coalition Government’s First Home Loan Deposit Scheme will help eligible first home buyers to purchase a home with a deposit of as little as 5 per cent.
The First Home Loan Deposit Scheme will allow eligible first home buyers to get into the market earlier and without incurring the additional cost of lenders mortgage insurance.
The Scheme is to be implemented by the National Housing Finance and Investment Corporation (NHFIC) who will partner with lenders to deliver the Scheme.
The Federal Government will guarantee up to 10,000 loans each financial year, starting from 1 January 2020.
By providing a guarantee, this will allow eligible first home buyers to purchase a home with a deposit of as little as 5 per cent.
Detailed eligibility criteria for the Scheme are being developed:
· The Scheme will be accessible to singles earning up to $125,000 and couples earning up to $200,000 annually;
· The value of the loans available under the Scheme will be determined on a regional basis; and
· The Scheme is expected to support around 10,000 first home buyers each financial year.
In Queensland, the capital city and regional centres price cap for a first home is set at $475,000, with homes in the rest of state having a cap of $400,000.
Further details on the Scheme will be announced closer to the Scheme’s commencement on 1 January 2020.
Ms Landry said the Scheme complements other measures the Government has taken to reduce pressure on housing affordability in Australia and support local communities.
“The Liberal National Government has successfully implemented the majority of measures announced in the Reducing Pressure on Housing Affordability 2017-18 Budget package,” Ms Landry said.
“This includes the First Home Super Saver Scheme which assists people saving for a house to build a deposit for a first home inside their superannuation fund by making voluntary contributions, reducing barriers to downsizing to free up homes for younger families, investing $1 billion in local infrastructure to unlock new housing supply, in partnership with local councils through the National Housing Infrastructure Facility and releasing suitable Commonwealth land, including defence land, for housing development.
“In the past year, more than 110,000 Australians bought their first home - the highest level since 2009.
“We are determined to assist all Queenslanders, to realise their hopes and dreams when it comes to working hard and owning their own home,” Ms Landry said.