November saw the Albanese Government take another step forward in delivering significant housing reforms with the introduction of Help to Buy legislation. Help to Buy will bring home ownership back into reach for 40,000 Australian households.
The Government will support eligible homebuyers with an equity contribution of up to 40 per cent for new homes and 30 per cent for existing homes. Homebuyers will need a minimum two per cent deposit to participate in the Scheme and will have lower ongoing repayments while they participate in the scheme, providing long‑term relief.
Help to Buy is intended to support Australians who otherwise would not be able to purchase a home. States will need to pass their own legislation however in order for Help to Buy to operate in their jurisdiction. All states agreed at the National Cabinet to progress the legislation so that the Scheme will run nationally from next year.
The Albanese Government has already helped more than 86,000 people across Australia into home ownership through the Home Guarantee Scheme, including 13,000 through the new Regional First Home Buyer Guarantee. The Home Guarantee Scheme has also been significantly expanded, making it easier for Australians to buy a home.
Minister for Housing, Julie Collins said, “Right across the country Help to Buy will be life-changing, bringing home ownership back into reach for thousands of Australians, particularly renters. It will not just be a leg up into home ownership 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. Our Government has already helped more than 86,000 people into home ownership, and Help to Buy will mean even more Australians have this opportunity.”
“Our ambitious housing reform agenda is working across the board – more help for homebuyers, more help for renters and more help for Australians needing a safe place for the night,” Ms Collins said.
The Housing Industry Association (HIA) has also welcomed the introduction of the Help to Buy legislation, with HIA Managing Director Jocelyn Martin noting that it will support more young Australians’ access to housing as well as address the declining rates of home ownership in Australia.
“The Help to Buy Scheme is an important initiative of the Federal Government to enable 40,000 eligible home buyers to obtain and secure a deposit for a new home faster,” said Ms Martin.
“While the opportunity to own a home can be challenging, and the type of homes many families aspire to are changing shape, previous research conducted by HIA shows an overwhelming majority of Australians agree that homeownership matters.”
Ms Martin said that these and other forms of housing incentive programs are critical to boosting housing supply and home ownership rates to support first-home buyers raising the deposit more quickly and easily.
“We know from previous schemes, such as the first Home Buyer Grant, that grants such as Help to Buy, are effective to getting people into their own home, and new housing supply is stimulated by these schemes.”
“HIA has been a strong supporter of assistance for first home buyers, to help get Australians into their first home and achieve their home ownership aspirations,” concluded Ms Martin.