By Mina Martin
The Albanese government has introduced the Help to Buy legislation, an initiative that aims to make homeownership a reality for 40,000 Australian households.
Help to Buy seeks to support eligible homebuyers, who, under normal circumstances, might find homeownership financially challenging, with a substantial equity contribution. For new homes, this contribution can go up to 40%, and for existing homes, it's set at 30%.
To participate in the scheme, home buyers will need a minimum deposit of 2%, providing a more accessible entry point into the property market. Beyond the initial deposit, participants will benefit from lower ongoing repayments, offering long-term financial relief.
States are required to pass their own legislation to enable the operation of Help to Buy within their jurisdictions. The government anticipates national implementation next year following the passage of Commonwealth legislation, with all states agreeing at the National Cabinet to progress legislation.
In a media release, Julie Collins (pictured above), minister for housing, underscored the transformative potential of Help to Buy, emphasizing its role in providing tangible opportunities for Australians.
“Right across the country, Help to Buy will be life changing, bringing homeownership back into reach for thousands of Australians, particularly renters,” Collins said.
“It won’t just be a leg up into homeownership with savings from a smaller deposit – it will provide long-term relief to Australians who are part of the scheme. In fact, Help to Buy could help eligible new homeowners save hundreds every month on their mortgage.”
Help to Buy joins a suite of housing reform measures initiated by the Albanese government. These include the creation of a $10 billion Housing Australia Future Fund, a new national target to build 1.2 million well-located homes, and various financial incentives and programs aimed at enhancing housing affordability and support.
To date, the Albanese government has assisted more than 86,000 individuals nationwide in achieving homeownership via the Home Guarantee Scheme, including 13,000 beneficiaries through the recently introduced Regional First Home Buyer Guarantee.
“Our ambitious housing reform agenda is working across the board – more help for home buyers, more help for renters and more help for Australians needing a safe place for the night,” Collins said.
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