A federal Labor government would deliver a $329-million help-to-buy scheme, providing 10,000 Australians with a government guarantee of up to 40 per cent on new homes or 30 per cent on existing homes with a two per cent deposit.
A doubling of foreign investment screening fees and financial penalties will bring in $445 million to fund the scheme which removes lenders’ mortgage insurance (LMI) and lowers mortgage repayments.
The help-to-buy scheme would allow homebuyers to buy back an additional stake in the home in five per cent increments.
No rent is required and homebuyers are responsible for stamp duty, fees and rates with a gross income limit of $90,000 for singles or $120,000 for couples.
“We note the proposed Help to Buy shared equity scheme is limited to 10,000 places a year and is therefore unlikely to distort housing markets or prices.