Homebuyers up in the air despite new government home loan support
Homebuyers up in the air despite new government home loan support
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
The government's promise of an equity contribution will help the most disadvantaged Australians to get a home loan, but they still won't be able to afford one.
Labor's "Help to buy" home loan scheme
Labor's centrepiece cost-of-living policy announced during the election was its Help to Buy scheme, which aimed to slash the cost of buying a new dwelling by 40 per cent and an existing one by 30 per cent.
Up to 10,000 applicants could get smaller deposits, smaller mortgages and smaller repayments.
Low-income borrowers may still find it hard to qualify for a mortgage when relying on a 2 per cent deposit, especially given that other schemes have not been successful.
Home loan qualification
The federal government concedes that saving a 2 per cent deposit won't be nearly enough for most low- to middle-income borrowers to qualify for finance to buy a home.
This is particularly so given that the mortgage might still be over $600,000 even after the government’s contribution , depending on where the home is located.”
That said, the barrier to entry for battlers may not be permanent.
NHFIC’s existing first-home loan scheme, requiring applicants to put down 5 per cent has a 90 percent success rate.
It’s not much for the desperate battler looking to buy a home, but it might provide some hope for someone in need of a loan to purchase an $800,000 home with only $16,000 instead of $40,000 deposit.
First-home buyers who don’t have government help and a 20 per cent deposit will need to pay lenders mortgage insurance.
Home loan experts
It would be essential for first home buyers to consult experts where and what to buy, especially given they will eventually need to pay back the government's equity stake, including capital growth.
It is even more important when, fundamentally, they will have to give up a significant percentage of the home equity and any value gain if they choose to sell down the track. In fact, this may prevent them from upgrading at all.
A survey of 1000 Australians found 41 per cent want the new federal government to address housing affordability, as many as those wanting an improved healthcare system, and even more than those seeking action on climate change.
Published:Sunday, 29th May 2022 Author:
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
Westpac’s latest full-year result has added a useful signal for Australian business borrowers: credit demand remains strong even as interest rates and operating costs keep pressure on cash flow. The bank reported on 2 November 2026 that its overall lending grew over the year, with business lending rising more quickly than many household-facing categories, reinforcing the sense that firms are still using finance to invest, refinance and manage working capital. - read more
APRA’s latest banking indicators point to a lending market that is still open, but not loose. Mortgage credit continues to move through the system, yet the regulator’s focus on serviceability, risk controls and higher-risk lending means borrowers should expect applications to be examined carefully rather than waved through on headline income alone. - read more
Australia’s latest national accounts have given borrowers a fresh read on the economy: growth is continuing, but momentum remains uneven and household spending is still being tested by higher living costs. For anyone weighing up a personal loan, home loan refinance, vehicle finance or business funding, the message is less about one headline number and more about how stable income, expenses and cash flow look over the next year. - read more
If you are seeking lower rates, lower fees and more flexibility in your home loan. you are in luck! Our national panel of mortgage brokers is looking forward to an opportunity to assist you. Apply online for a free eligibility assessment and one of our broker network refinance specialists will get on the case to track down the best deal for your individual circumstances. Without any obligation and at no charge to you!
Welcome to the world of car ownership! If you're a first-time borrower in Australia, you're likely to feel a mix of excitement and apprehension. Acquiring a car loan is a significant financial responsibility, and navigating through the options can be daunting. This introductory guide is designed to set you on the right path to making a well-informed decision. - read more
Finance brokers and quote comparison services can help Australian borrowers explore personal, home, vehicle or business finance options, but they do not all work the same way. This guide explains the typical process, what brokers may do, how referral networks and lender panels operate, and what to check before proceeding. - read more
Debt consolidation is a strategy often utilized by individuals seeking to take control of their financial health. At its core, debt consolidation involves combining multiple debts into a single, more manageable loan, typically with more favorable terms such as a lower interest rate or a longer repayment period. - read more
Guarantor: A party who agrees to be responsible for the payment of another party's debts should the original party fail to pay or perform according to a contract.
No comments yet. Be the first to share your thoughts.