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.
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:
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.