Yahoo Finance Budget 2022: 5% deposit available to more first-home buyers
Treasurer Josh Frydenberg has announced a suite of measures in the 2022 Budget to ease the high costs of housing, including expanding its home guarantee scheme and increasing the National Housing Finance and Investment Corporation (NHFIC) liability cap by an extra $2 billion.
On Monday, ahead of the Budget’s release, the Morrison Government announced it would more than double its home guarantee scheme.
Under the changes, 35,000 first-home buyers will be able to buy a property with only a 5 per cent deposit - up from 10,000 last year - with the other 15 per cent of the loan guaranteed by the Government.
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The scheme also helps Aussies dodge lenders mortgage insurance, which can climb to tens of thousands of dollars.
The Federal Government also announced a new home guarantee scheme targeted at the regions on Monday.
The Government will support 10,000 people a year under the new scheme accessible to first home buyers as well as people who have not owned property in the past five years.
The regional scheme is also open to permanent residents, which is part of the Government’s plan to attract more migrants to the regions.
There will also be 5,000 home guarantees for single parents each year, which allows single parents with dependent children to buy a home with a 2 per cent deposit with the government guaranteeing the remaining 18 per cent.
This will come at a cost of $8.6 million over four years from 2022-23 and $138.7 million over 7 years from 2026-27, with $20.5 million per year ongoing from 2033-34.
The Government will also increase its guaranteed liability cap of the NHFIC by $2 billion to $5.5 billion to allow it to support increased loans through the Affordable Housing Aggregator, which provides low cost, long-term loans to registered community housing providers.
What was announced last year?
Last year, the Federal Government also increased the amount first home buyers could take out of their super for a house deposit from $30,000 to $50,000.
Frydenberg also said changes to superannuation brought in last year would free up more housing for young families.
People over 60 are now allowed to contribute up to $300,000 into their superannuation if they downsize their home, which Frydenberg said would help younger families buy homes as older Australians would be more willing to put their properties on the market.
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