The Government has passed new laws to implement the First Home Loan Deposit Scheme.
Editor: This measure is in addition to the First Home Super Saver Scheme, which helps Australians build a deposit for a first home inside their superannuation fund by making voluntary contributions.
The First Home Loan Deposit Scheme is designed to facilitate earlier access to home ownership for first home buyers, by providing a guarantee that will allow eligible first home buyers on low and middle incomes to purchase a home with a deposit of as little as 5%, supporting 10,000 first home buyers each financial year.
Applicants will be subject to eligibility criteria, including having taxable incomes up to $125,000 per annum for singles, and up to $200,000 per annum for couples.
The Scheme will apply to owner-occupied loans on a principal and interest basis, and will be subject to regional price caps.
The legislation also establishes a new housing research function that will allow the National Housing Finance and Investment Corporation to examine housing demand, supply and affordability in Australia, complementing existing housing-related research.