Who the Help to Buy Scheme will assist
Legislation for the Federal Government’s proposed Help to Buy Scheme, supporting up to 40,000 low and middle-income families to purchase a home of their own, is reported to be introduced into Parliament this week.
The aim of the shared equity scheme is to “bring home ownership back into reach for thousands of Australians who have been locked out of the housing market”, said Minister for Housing and Homelessness Julie Collins MP.
“The Government will provide an equity contribution to eligible participants of up to 40 per cent for new homes and 30 per cent for existing homes.”
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The Albanese Government has been working with states and territories to deliver the Help to Buy Scheme and for states to participate, legislation will need to be passed for the scheme to operate in their jurisdiction, Ms Collins said.
“All states have agreed at National Cabinet to progress legislation so the scheme will run nationally.”
Under the Queensland Government, a Pathways Shared Equity Loan is currently available to tenants living in government-owned housing but can’t afford to buy the home they’re renting.
According to the Queensland government, this loan allows Queensland public housing tenants to enter into a partnership with the department to buy a share of the home.
To do so, the home must be the one they are currently renting and available for purchase.
The tenants’ loan repayments are no more than 35 per cent of their income and they are responsible for paying council rates, maintenance costs and home insurance but they don’t pay rent on the department’s share of the home.
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Under the Albanese Government’s Help to Buy Scheme, home buyers will need a minimum two per cent deposit to participate in the Scheme, said Housing Industry Association (HIA) managing director Jocelyn Martin.
“The HIA welcomes the introduction of the Help to Buy legislation to support more young Australians access to housing and address the declining rates of home ownership in Australia.
“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.
“These and other forms of housing incentive programs are critical to boost 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,” said Ms Martin.
