A scheme that will see the Federal Government support 10,000 first- home buyers have been approved. The National Housing Finance and Investment Corporation Amendment Bill 2019 – introduced to the House of Representatives and the Senate in September – was finally passed by both houses last week.
In a joint statement, Minister for Housing Michael Sukkar and Treasurer Josh Frydenberg said the passage means “first-home buyers will be able to enter the property market sooner”.
The Federal Government says: “ The Scheme is designed to facilitate earlier access to homeownership for first home buyers, by providing a guarantee that will allow eligible first home buyers on low and middle incomes to purchase a home with a deposit of as little as 5 percent. The Scheme will support 10,000 first home buyers each financial year.”
“The Government recognizes that saving a deposit has become a more significant barrier to entering the housing market. It can take ten years for the average first home buyer to save a 20 percent deposit.”
“Applicants will be subject to eligibility criteria, including having taxable incomes up to $125,000 per annum for singles and up to $200,000 per annum for couples. The Scheme will apply to owner-occupied loans on a principal and interest basis, and will be subject to regional price caps.”
“The legislation also establishes a new housing research function that will allow NHFIC to examine housing demand, supply, and affordability in Australia, complementing existing housing-related research.”
These incentives have helped thousands of first home buyers enter the market. In the past year, more than 110,000 Australians bought their first home.
Finance or mortgage brokers provide property investing advice on a range of borrowing options, however choosing the right one is essential because they will do the legwork and guide you through the loan application process.