The First Home Loan Deposit scheme allows buyers to purchase a property with just a five per cent deposit and without the requirement for lenders mortgage insurance, but the party is coming to an end.
Treasury figures show that only 363 of the 10,000 spots released in July are still available, with 4305 places currently reserved by buyers still looking for a home, while 5332 purchases have been made through the program.
Although the government announced an additional 10,000 places will open during the current financial year, these have not yet been made available.
New stipulations also mean that the forthcoming spaces will only be available to first home buyers who plan to purchase a newly-built home, pricing out a number of potential home owners.
According to REIA President Adrian Kelly, this ignores the realities of the marketplace.
“Historically we have seen that less than 20 per cent of Australian first home buyers buy new homes,” Mr Kelly said.
“Over 80 per cent of Australian first home buyers purchase established dwellings.
“In more recent times even fewer small home buyers are choosing new dwellings.
“In general, first home buyers’ property choices are based on affordability of older dwellings in locations that provide proximity to work, leisure activities and infrastructure including public transport.”
In August, 12,302 first home buyers settled mortgages, the highest monthly figure since October 2009.
“The fact that demand from first home buyers is so great that the government has decided to expand the scheme, shows what HIA’s research has suggested all along – Australians still cling to the dream of home ownership and the security it brings,” Housing Industry Association managing director, Graham Wolfe said.
Thirty-five per cent of applications for the scheme are between 25-29, with 24 per cent aged under 24.
The average deposit laid down is six per cent, with 60 per cent of applications being individuals.