A scheme to help more Australians into their own homes by allowing them to purchase a property with as little as a 2% deposit has this week taken a step closer to fulfilment.
The ‘Help to Buy’ legislation introduced in federal parliament aims to support 40,000 eligible homebuyers with an equity contribution of up to 40% for new homes and 30% for existing homes.
Homebuyers will need a minimum 2% deposit to participate in the scheme, and will have lower ongoing repayments while they are in it.
The Housing Industry Association (HIA) welcomed the legislation, saying that these and other forms of housing incentive programs are critical to boost housing supply and home ownership rates to support first home buyers raising the deposit more quickly and easily.
“We know from previous schemes, such as the first Home Buyer Grant, that grants such as Help to Buy, are effective to getting people into their own home, and new housing supply is stimulated by these schemes”, said HIA Managing Director Jocelyn Martin.
While the federal government is committed to providing the opportunity to purchase a home under Help to Buy, it will need to be passed in all states and territories to operate in their jurisdiction.
This should not be a problem, however, since all states have agreed at National Cabinet to progress legislation so the scheme will run nationally.
To date, the Albanese Government has already helped more than 50,000 Australians into home ownership through the Home Guarantee Scheme, including more than 6,000 through the new Regional First Home Buyer Guarantee.
