US EditionThe New First Home Buyers Scheme Is to Help People Like Me. But There’s One Major Flaw
The new deposit scheme aims to help tens of thousands of first-home buyers avoid mortgage insurance and reduce saving time by up to nine years, Treasury says impact on prices will be minimal.
- Starting October 1, the federal government launched its new regime, offering five per cent home deposits backed by the taxpayer and fast-tracking the policy's implementation.
- Earlier this year, Labor expanded the Home Guarantee Scheme, cutting deposits to help first-home buyers as Housing Minister Clare O'Neil said, `This is about reshaping those opportunities which are being faced by the younger generation of Australians` and backed the plan with billions in supply funding.
- Domain analysis found the initiative could cut Sydney saving times from 11 years to two or three years and set a $1.5 million price cap for Sydney amid a median property value of $857,280 in September.
- Warnings came from the Insurance Council, which forecast a 10 per cent home value rise in the first year, while Treasury modelling suggests just 0.5 per cent over six years and Reserve Bank Governor Michele Bullock cautioned supply fixes will take at least two years.
- Adding to demand, approvals slumped 6 per cent in August, while the government aims for 1.2m homes but may fall at least 50,000 short this year with 205,000 migrants next year.
13 Articles
13 Articles
Expanded 5 per cent deposit first home buyers scheme opens to all
Buying a first home now has one less hurdle with the federal government's 5 per cent deposit scheme opening to all first time buyers today.But there are concerns over what impact the policy could have as property prices continue to grow.The helping hand is open to all first home buyers, who from today, can pay as little as a 5 per cent deposit instead of 20 per cent.READ MORE: Surge in counterfeit cash sparks warning from police"More young Aust…
Labor's 5% deposit for first home buyer scheme launches as housing price fears grow
From today first home buyers can enter the market with just a 5 per cent deposit. It was a key Labor election pledge. The government will act as guarantor so buyers avoid paying lender's mortgage insurance. But there's a catch - the measure could raise house prices.
Coverage Details
Bias Distribution
- 46% of the sources lean Left, 45% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
