Workforce pledges to support 10,000 area homebuyers

Opposition Leader Anthony Albanese, alongside Jason Clare, revealed a scheme to help 10,000 Australian families a year buy their first home.

The scheme, which would be implemented if an Albanian Labor government were elected to power in the next federal election, would target regional families and aims to triple the number of places Australians living in regional areas received last year in under the current First Home Loan Deposit System.

“First-time home buyers in the region need and deserve their own dedicated program to help them buy a home,” the Leader of the Opposition said.

Places will be reserved for Australians who have lived in this area for more than 12 months and will provide first-time home buyers with assistance in moving into a home sooner with a 5% down payment, without having to pay the mortgage insurance of the lenders (LMI).

“It’s harder to buy a house today than ever before,” Mr. Albanese acknowledged, noting that regional house prices have jumped, on average, 26% in 2021.

He also pointed out that a number of regions have seen even higher growth rates: Wamberal, Victoria (47.1%); Terrigal, New South Wales (45.2%); Kiama, New South Wales (35.7%); TorquayTorquay, QLD Torquay, VIC, Victoria (34.5 percent); Cessnock, New South Wales (33.3%); Launceston, Tasmania (40.3%); and Burny, Tasmania (30.4 percent).

Under the proposed scheme, first-time home buyers in the NSW areas of Illawarra, Central Coast and Newcastle would be capped at $800,000, resulting in potential mortgage insurance savings of $31,939 .

Elsewhere in NSW, regional first-time home buyers would be capped at $600,000 – with the potential to save $23,954 on insurance costs with a smaller deposit required.

In Victoria’s Geelong, the house price cap would be $700,000 offering potential savings of up to $27,946.

For all other regional parts of Victoria, house prices would be capped at $500,000 savings of up to $14,871.

Buyers of regional homes in the Northern Territory will also be able to use the scheme up to a value of $500,000.

In Queensland, first-time home buyers and residents of the Gold Coast and SunshineSun, NSW Sun, VIC Coast could use the program for homes worth up to $600,000 and save up to $23,954 on IMT.

Elsewhere in the state, first-time home buyers could use the program for homes up to $450,000 tap into savings of $13,384.

In Western Australia and Tasmania, regional first-time home buyers will be capped on the purchase price of a property at $400,000 leading to $11,897 in potential insurance savings, while regional buyers in South Australia will be able to access the scheme up to a property value of $350,000 and save over $10,000 in insurance costs.

The statement further stated that an Albanian Labor government “would also improve the functioning of the current [FHLDS] reviewing and updating price caps on a semi-annual basis and improving the process for reallocating unused collateral.”

This comes a week after the federal government released its The Australian Dream report, following the Housing Affordability and Supply Survey.

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About the Author

Grace Ormsby

Grace is a reporter for real estate and investment brands Momentum. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communications (Journalism) from Newcastle University. She is passionate about providing easy-to-digest information and relevant content for her key audiences and… Read more

Workforce pledges to support 10,000 area homebuyers




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Last update: March 25, 2022

Posted: March 25, 2022