The First Home Loan Deposit Scheme will enable first home buyers to purchase a modest property as their first home.
The Government will guarantee up to 10,000 loans each financial year, starting from 1 January 2020.
By providing a guarantee that will allow eligible first home buyers to purchase a home with a deposit of as little as 5 per cent.
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 allow first home buyers to buy a home across and within all geographic jurisdictions with appropriate price thresholds for capital and large regional cities, as well as regional areas.
The Scheme will apply to owner-occupied loans on a principal and interest basis
The Scheme complements other Coalition Government initiatives to reduce pressure on housing affordability in Australia and support local communities.
- The First Home Super Saver Scheme which helps Australians build a deposit for a first home inside their superannuation fund by making voluntary contributions.
- Investing $1 billion in local infrastructure to unlock new housing supply, in partnership with local councils through the National Housing Infrastructure Facility.
- Releasing suitable Commonwealth land, including defence land, for housing development.