From today, first home buyers can realise their dream of home ownership sooner with the launch of 5 per cent deposits for all first home buyers, delivered months ahead of schedule.
The Albanese Government’s expanded 5 per cent deposit scheme guarantees a portion of a buyer’s home loan, cutting years off the time it takes to save for a deposit and saving on Lenders Mortgage Insurance.
Already more than 185,000 Australians have been supported into home ownership through this scheme. Today’s expansion means more Australians will get the keys to their first home sooner.
All first home buyers are now eligible, with no caps on places or income. Property price caps have also been lifted in line with average house prices, giving buyers access to a wider range of homes.
The median home price in Australia today is $844,000 and 5 per cent of that is $42,200. The last time $42,200 covered the 20 per cent deposit for a median home was 2002, which shows the generational scale of this change.
The expanded scheme means a first home buyer in Sydney can purchase a $1 million home with a $50,000 deposit. They could save up to 10 years off the time it takes to save for a deposit, save about $42,000 in mortgage insurance, and could pay up to $350,000 towards their own loan instead of paying rent.
It means that a first home buyer in Bendigo could purchase a $600,000 home with only a $30,000 deposit. They could save up to 6 years off the time it takes to save for a deposit, save about $25,000 in mortgage insurance, and could pay up to $126,000 towards their own loan instead of paying rent.
This is part of the Albanese Labor Government’s $43 billion housing agenda to build more homes, back first home buyers, and get renters a better deal.
More information on the 5 per cent deposits scheme is available from the Housing Australia website.
