As the Federal Government readies to bring down its October budget, an expansion of the first-home buyer loan scheme could be on the cards, following a rush of demand.
National Housing Finance and Investment Corporation figures show that over 40 per cent of the 10,000 available slots have been filled in less than a month. In comparison, the first 10,000 places were filled over a period of six months, between January and June this year.
Housing Minister Michael Sukkar told The Australian the government is “doing all we can to help Australians get into a home of their own sooner”, calling the scheme “critical in driving first-home buyer confidence” during this economic downturn.
“By delivering our loan guarantees, we are helping Australians cut years off the time it takes to save, as first-time buyers can now purchase a home with a deposit of as little as 5 per cent,” Mr Sukkar said.
“The data shows buyer confidence is being maintained with the recently released tranche of guarantees being eagerly secured.”
REA Group Director of Economic Research, Cameron Kusher, cited the success of the scheme as being partially responsible for the first quarterly fall in rental prices in almost 50 years, by “encouraging purchasing from first home buyers who otherwise may have been renters.”