First home deposit scheme well placed to help thousands

The Housing Industry Association has welcomed the adjustment of First Home Loan Deposit price caps and build times.

The Announcement:

The recent adjustments to the price caps and build times under the First Home Loan Deposit Scheme for the next allocation of 30,000 guarantees will help thousands more families achieve the security that comes with owning a home sooner, according to the Housing Industry Association (HIA).

“The original First Home Loan Deposit Scheme has been a great success with 20,000 places taken up over the last 18 months. Continuing this scheme with the release of the next 10,000 places on 1 July 2021 recognises this success and will be welcomed by first home buyers across Australia,” said Kristin Brookfield, HIA Chief Executive Industry Policy.

“Buyers accessing the Guarantee to date have generally been on lower incomes and bought homes below the price caps. Increasing the price caps for this next tranche is an important recognition that house prices have been changing due to the impacts of the pandemic.

“The adjustment of the price caps for the complementary new scheme announced in this year’s Budget, the Family Home Guarantee, also makes good sense. The 10,000 Family Home Guarantee places will help the ‘missing middle’ of home buyers – families who have owned previously but are struggling to get back into the market. Today, there is no other support for this group of aspirational home buyers.

“Another important adjustment is the extension of build times for the next 10,000 places under the New Home Guarantee from 1 July 2021. The success of HomeBuilder has placed pressure in the supply chain for builders, contractors and suppliers making it important to provide time for new home projects under this program to start work. Extending this from 6 months to 12 months is critical right now.

“All three programs under the First Home Loan Deposit Scheme offer a practical way to reduce the time people spend saving a deposit to buy their home, particularly their first home. Putting their savings directly into a home loan, up to 6 years earlier, helps to keep first home buyers ahead of changes in house prices, achieve home ownership sooner and build their financial security faster.”

Source: Housing Industry Association

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