In brief

• An Albanese Labor Government will help 10,000 first home buyers a year in regional Australia to buy a home.
  
  
• First home buyers will save up to $32,000 in mortgage insurance and be able to secure a home with a deposit as low as 5 per cent – with the government guaranteeing up to 15 per cent of the purchase price.
  
  
• Labor’s plan will bring home ownership back into reach for tens of thousands of Australians in regional areas over the next few years.
  
  

Why do we need this?

Housing affordability is one of the biggest issues facing Australia. It is harder to buy a house today than ever before. 

The housing crisis is hitting regional Australia the hardest, with many regional areas facing the largest drops in housing affordability.

The cost of buying a house in regional areas has gone up faster than in the capitals, on average. At the same time, rent in many places has jumped by thousands of dollars a year – making it even harder to save a deposit.

Existing programs for first home buyers are fully subscribed and many Australians are missing out.

The details

Labor’s Regional First Home Buyer Support Scheme will help 10,000 first home buyers a year in regional Australia to buy a home. 

This will approximately triple the number of people in regional areas who can access a government guarantee scheme.

Labor’s Regional First Home Buyer Support Scheme will provide a government guarantee of up to 15 per cent for eligible first home buyers, so locals with a 5 per cent deposit can avoid paying mortgage insurance – saving up to $32,000. 

To take advantage of the scheme, locals will need to:

• Live outside a capital city.
• Be a first home buyer who is an Australian citizen over 18.
• Live in the house purchased.
• Have a taxable income of up to $125,000 per year for singles and $200,000 a year for couples.
• Have been living in the region for at least 12 months.
• Meet the property price thresholds for the region under the existing First Home Loan Deposit Scheme.

Existing houses, townhouses and units will be part of the scheme. Along with house and land packages, off-the-plan apartments and land with a contract to build. 

The eligible regions, local price caps and mortgage insurance savings are:

Labor will also improve the operation of the current scheme by reviewing and updating the price caps on a six-monthly basis and improving the process of reallocating unused guarantees. 

Labor’s First Home Buyer Support Scheme will start in January 2023 and cost $12.1m to the end of 2024-25.