Home buyer boom: 10,000 more places added to loan deposit scheme

The Federal Government has announced an additional 10,000 places in its First home Loan Deposit Scheme in a bid to help more Australians into their first home. Announced this morning, the additional 10,000 places will be provided by October 6 this year. Under the existing First Home Loan Deposit Scheme, eligible first home buyers can purchase a modest home with a deposit of as little as 5 per cent.

The Federal Government acts as guarantor on the remaining 15 per cent of the deposit – which home owners still need to pay. The additional guarantees will be available until 30 June 2021 and will drive more construction and support jobs as part of our Economic Recovery Plan. In a joint release, Treasurer Josh Frydenberg and Minister for Housing Michael Sukkar said it will help Australians into a home sooner than they expected.

“The Government recognises that saving a deposit has become a more significant barrier to entering the housing market than the ability to service a home loan,” the Treasurer said in a statement.”Eligible first home buyers will also be able to take advantage of the Morrison Government’s First Home Super Saver Scheme and HomeBuilder, and first home buyers may also be eligible for state and territory grants and concessions.”Combined, the First Home Loan Deposit Scheme, Homebuilder and First Home Super Saver Scheme represent an unprecedented level of Government support for home buyers and the construction industry alike.”