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.
- 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