First Home Owner Scheme Officially Legislated

The Bill to allow first home buyers easier access to the property market has now been passed in both the upper and lower houses.

first home

WILLIAMS MEDIA recently wrote of the progress of the First Home Loan Deposit Scheme as it made its way from the Senate to the Lower House. Read it here

The Bill to allow the scheme to become law has now passed through both the upper and lower houses and The Property Council welcomes the legislation that helps first homeowners and ensures a stronger supply of housing data for informed decision making.

Ken Morrison, Chief Executive of the Property Council of Australia, said the new first home loan scheme would not only provide pathways to home ownership for more Australians, but provide timely stimulus for housing and construction supply.

“The current ‘deposit gap’ has been a big hurdle for many first home buyers and adds to the time they need to spend saving to meet the lenders deposit requirements, or purchase expensive mortgage insurance,” Mr Morrison said.

At a glance:

  • It takes 9 years to save a 20 per cent deposit for a home
  • The First Home Loan Deposit Scheme reduces barriers for up to 10,000 homebuyers per year
  • Extra housing data will be available from new research function through the scheme

“According to recent data from CoreLogic, the average Australian homebuyer needs just under nine years to save for the 20 per cent deposit requirement – and longer in markets such as Melbourne and Sydney.”

“The First Home Loan Deposit Scheme reduces these barriers to entry for up to 10,000 first homebuyers every year, and boosts support for construction sector jobs, helping to drive economic growth at a critical time.

“We welcome a commitment to review the scheme after 12 months to ensure it will be responsive to demand.”

The Property Council also warmly welcomes the provision of extra housing data that will stem from the National Housing Finance and Investment Corporation’s (NHFIC) new research function.

“Australia has suffered from a lack of timely and reliable data on housing over past years,” Mr Morrison said.

“The NHFIC’s new research function will provide additional information on demand, supply and affordability that will be immensely helpful in shaping future housing policy.”

Source:  The Real Estate Conversation 17th October 2019