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First home buyers may only have to shell out a 5 per cent deposit under the Coalition’s new plan.
The government recently revealed the draft Investment Mandate for the First Home Loan Deposit Scheme, which could support as many as 10,000 buyers each year.
To be able to qualify, a single first home buyer will have to earn no more than $125,000, and a couple will have to have a joint income less than $200,000.
There will also be property price caps, which will be higher in cities with more than 250,000 people compared to regional areas.
This was a campaign promise of the Coalition before the election, and Labor also backed it.
However, the tune has changed from the opposition benches as shadow housing minister Jason Clare wants more details.
“We want to know which banks you can go through to get access to that scheme,” he told ABC’s RN Breakfast.
“It’s important that it’s not just the big four banks that will benefit from the scheme. And it’s important we understand whether you’re going to need a 5 per cent deposit, a 10 per cent deposit or a 15 per cent deposit.”
Mr Clare is concerned it will be just people in the big centres who will benefit from the scheme.
While Labor mostly supports the scheme, it wants it to be reviewed each year to see how effective it has been.
“What I’m hoping is that this is a scheme that helps people who’ve been struggling for a long time to save up a deposit but haven’t been able to save a lot,” he said.
“A first come, first served system means that some people might benefit who aren’t as deserving as they are, for example. That aren’t as quick off the mark.”
The government is seeking feedback from stakeholders until 4 November 2019.
Property price caps:
NSW
Large centres: $700,000
Other areas: $450,000
Victoria
Large centres: $600,000
Other areas: $375,000
Queensland
Large centres: $475,000
Other areas: $400,000
WA
Large centres: $400,000
Other areas: $300,000
SA
Large centres: $400,000
Other areas: $250,000
Tasmania
Large centres: $400,000
Other areas: $300,000
ACT
$500,000
NT
$375,000
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