THE LABOR GOVERNMENT'S
HOME BUYER SCHEME
UNPACKED
WHAT DOES THE LABOR PARTY’S WIN MEAN FOR HOME BUYERS?
Home buyers and housing affordability dominated the federal election conversation, becoming one of the key policy contests for both parties. But what does Labor’s proposed Help to Buy Scheme mean for home buyers eager to get onto the property ladder?
In this article, we break down the national scheme designed to help you into your first home.
HELP TO BUY SCHEME
Labor’s Help to Buy Scheme is designed to help you buy a house by way of a government loan of up to 40% of the purchase price of a new property, and up to 30% of the purchase price of an existing home.
This means the government will own a share in your house, which you can choose to buy back over time. The scheme isn’t restricted to first home buyers and is available for anyone who does not currently own a property.
The details
- - You must have a minimum 2% deposit saved
- - The scheme is valid for homes worth up to $950,000
- - You won’t be required to pay lenders mortgage insurance (LMI)
- - The scheme is capped at 10 thousand places a year and is limited to individuals earning less than $90,000 or couples earning $120,000
- - The home must be insured
- - There is a maximum price cap across each state
- - Start dates are yet to be confirmed by the government
here's how it works
How will it help?
According to Labor’s policy page, for a home buyer in Sydney purchasing at the maximum price cap of $950,000 and with the Government’s 40% stake, the monthly mortgage repayments would be over $1,600 cheaper*.
*Source: NAB home loan repayment calculator.
This scenario assumes a 25-basis-point increase on the current base variable mortgage rate of 3.45%, monthly principal, and interest over 30 years
What if you Sell?
If you sell the house, the government takes the percentage amount of its original investment from the sale price, plus a portion of whatever capital gains have been made.
The Fine print
Homeowners must live in the property for at least two years and if your income increases, you will be required to increase your repayments to the government for the property. During the loan period, you may choose to buy back from the Government an additional stake in the home but the most you can opt to purchase at any one time is 5% annually.
GET ON YOUR OWN WAY WITH CORONATION
Are you thinking about taking that first step to ownership? We’re here to help.
Coronation has a range of 1, 2 and 3 bedroom apartments available now at Mason & Main, Merrylands, plus move-in ready apartments at The Paper Mill precinct located in Liverpool.
To further assist, we recently launch our 1% Own Way Scheme – a flexible deposit payment plan that allows you to secure a property today without needing to pay the standard 10% deposit upfront. Designed to support aspiring home buyers to take a step up the competitive property ladder, this scheme is eligible to be used in conjunction with any of these government incentives.
Get in touch with one of our property specialists to explore our portfolio of off-the-plan and brand-new apartments. Learn more here.
MASON & MAIN
The Paper Mill
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