New home loan scheme, access to more super and new home guarantees all on the cards
Tuesday’s budget will release a number of housing policy initiatives – the most high-profile of which will be a government-backed home loan scheme designed to help over 125,000 Aussies to get onto the housing ladder.
The leaked “family home guarantee package” is designed to help single parents get out of long-term rentals and into a home of their own.
Minister Michael Sukkar told The Australian that the plan was to help single parents , who are predominantly women.
“Saving for a deposit remains the biggest hurdle to achieving the dream of homeownership,” he said. “First-home buyers and single-parent families can count on the Morrison government to help them overcome the deposit hurdle and achieve the Australian dream.”
Big four bank NAB has been quick to applaud the leaked budget proposals.
“We’re excited by the new initiative for single parents, recognising that buying a home is often a major challenge for Australians on a single income. We expect the Family Home Guarantee will provide hope and build confidence for single parents to enter, or in some cases re-enter, the property market,” It said in a statement.
Fast facts:
10,000 – initial number of places on the scheme
125,000 – estimated number of creditworthy single parents
$125,000 – maximum amount applicants can earn to be eligible
State/City average market valuation – maximum house purchase price under the scheme
First home owner – not necessary, but can’t already own a property
What other property policies are in the budget?
- New homes guarantee scheme – extended to a further 10,000 places.
- Must have a deposit of 5%
- Must earn less than $125,000 (single) $200,000 couples
- Must be a first time home owner
- Maximum drawdown on voluntary super increased from $30,000 to $50,000
- $3 trillion – amount held by Australians in super funds
- $8.1 trillion – amount held by Australians in residential real estate
