The Government’s First Home Loan Deposit Scheme has been expanded by another 10,000 places, allowing for more first-time home buyers to purchase a property with only a five per cent deposit.
The other 15 per cent of the loan is guaranteed by the Government. This also helps Aussies side-step lenders mortgage insurance, which can climb to tens of thousands of dollars.
The extension is expected to give a boost to the residential construction sector, and is in line with the Morrison Government’s “shovel-ready” approach to economic recovery.
Nearly 20,000 Aussies have already benefited from the scheme, which will be available to Aussies from budget night next Tuesday until the end of the current financial year on 30 June 2021.
The scheme can also be used with HomeBuilder, which gives Aussies grants of $25,000 for new homes and renovations.
“Helping another 10,000 first home buyers to buy a new home through our First Home Loan Deposit Scheme will help to support all our tradies right through the supply chain including painters, builders, plumbers and electricians,” said Treasurer Josh Frydenberg.
"At around five per cent of GDP, our residential construction industry is vital to the economy and our recovery from the coronavirus crisis."
The price caps are higher this financial year, with Sydneysiders able to purchase homes worth up to $950,000; $850,000 for Melbourne residents; $650,000 in Brisbane; and $550,000 in Perth.
Aussies have to be earning less than $125,000 as an individual or below $200,000 for couples in order to be eligible for the scheme.
Previous research from Domain found that the scheme could actually cost first-home buyers $50,000 in the long run.
Rolling coverage: For more Yahoo Finance stories on the 2020 Federal Budget, visit here.
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