From today, first home buyers across Australia can secure their dream of home ownership sooner, with the Albanese Government’s expanded 5 per cent deposit scheme coming into effect months ahead of schedule.
Prime Minister Anthony Albanese said the expansion would help thousands of Australians get the keys to their first home faster.
“We’re making it easier for young people and first home buyers to achieve the dream of owning a home,”
he said.
The scheme, which guarantees part of a buyer’s home loan, slashes the time needed to save for a deposit and removes the need for costly Lenders Mortgage Insurance.
More than 185,000 Australians have already benefited, and the expansion now makes the scheme available to all first home buyers, with no limits on places or income. Property price caps have also been lifted to reflect market averages.
With the median home price at $844,000, the required 5 per cent deposit is $42,200 — a figure that once represented a 20 per cent deposit back in 2002. The government says this highlights the generational significance of the change.
Under the expanded scheme:
• A first home buyer in Sydney could buy a $1 million home with a $50,000 deposit, saving up to 10 years of saving time, avoiding $42,000 in mortgage insurance, and redirecting as much as $350,000 from rent into their own loan.
• In Bendigo, a buyer could secure a $600,000 home with just $30,000 upfront, saving six years on deposit savings, avoiding $25,000 in insurance, and building equity worth up to $126,000.
Housing Minister Clare O’Neil added the change could cut deposit saving times from 11 years to just two or three.
“It’s really tough for young people trying to get into the housing market. This scheme means thousands more Australians can stop paying off someone else’s mortgage and start building equity in their own home,”
she said.
The $43 billion housing package also includes building more homes and measures to deliver a better deal for renters.
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