PHOTO: The program will guarantee loans up to caps based upon local median house prices. ABC News: Liz Pickering
A Federal Government scheme to allow first home buyers to purchase a property with a deposit as little as 5 per cent will operate on a “first-in, best-dressed” basis.
Key points:
- The Federal Government will offer loan guarantees for eligible buyers on low and middle incomes
- The scheme is aimed at helping up to 10,000 first home buyers enter the market each year
- The Government announced the scheme ahead of the Federal Election in May
Scheme’s property price caps:
| State/territory | Capital city and regional centres | Rest of state |
|---|---|---|
| NSW | $700,000 | $450,000 |
| VIC | $600,000 | $375,000 |
| QLD | $475,000 | $400,000 |
| WA | $400,000 | $300,000 |
| SA | $400,000 | $250,000 |
| TAS | $400,000 | $300,000 |
| ACT | $500,000 | – |
| NT | $375,000 | – |
The Government has today unveiled details of the scheme aimed at helping up to 10,000 first home buyers on low and middle incomes enter the market each year from January 2020.
Under the scheme announced ahead of the May election, the Government will offer loan guarantees for Sydney properties worth up to $700,000, and $450,000 across the rest of New South Wales.
In Melbourne, eligible buyers will be able to access the scheme when purchasing a home worth up to $600,000, and $375,000 across other parts of the state.
Price thresholds for capital cities will also apply to large regional centres with populations over 250,000, including the Gold Coast, Newcastle, Lake Macquarie, the Sunshine Coast, Illawarra (Wollongong) and Geelong.
READ MORE VIA ABC