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| Version 0 | Version 1 |
|---|---|
| Government announces price caps for first-homebuyer deposit scheme | Government announces price caps for first-homebuyer deposit scheme |
| (32 minutes later) | |
| The Morrison government has announced further details of its first-homebuyer deposit scheme, an election promise that stands to benefit up to 10,000 Australians each year. | The Morrison government has announced further details of its first-homebuyer deposit scheme, an election promise that stands to benefit up to 10,000 Australians each year. |
| The government has also announced price caps for support through the scheme, which is $700,000 for a house in Sydney and $600,000 in Melbourne. | The government has also announced price caps for support through the scheme, which is $700,000 for a house in Sydney and $600,000 in Melbourne. |
| First homebuyers will only have to save 5% of a deposit under the plan, with the federal government to guarantee the difference of a standard down payment. | First homebuyers will only have to save 5% of a deposit under the plan, with the federal government to guarantee the difference of a standard down payment. |
| The scheme will kick off from January next year, when eligible first home buyers will be able to apply to yet-to-be-announced lenders. | |
| The Morrison government is seeking feedback on the draft framework for the scheme until 4 November. | |
| What first-home buyers should know about ‘bank of mum and dad’ | What first-home buyers should know about ‘bank of mum and dad’ |
| “There is no specific number of guarantee per jurisdiction, it will be on a first-in-best-dressed basis,” the finance minister, Mathias Cormann, told Sky News on Sunday. | “There is no specific number of guarantee per jurisdiction, it will be on a first-in-best-dressed basis,” the finance minister, Mathias Cormann, told Sky News on Sunday. |
| The price caps differ per state and whether people are trying to buy a house in a capital city, large regional centre or regional area. | The price caps differ per state and whether people are trying to buy a house in a capital city, large regional centre or regional area. |
| Capital cities and large regional centres are defined as areas with a population of more than 250,000, including the Gold Coast, Newcastle and Lake Macquarie, the Illawarra and Geelong. | Capital cities and large regional centres are defined as areas with a population of more than 250,000, including the Gold Coast, Newcastle and Lake Macquarie, the Illawarra and Geelong. |
| There’s a flat price cap for the ACT ($500,000) and the Northern Territory ($375,000). | There’s a flat price cap for the ACT ($500,000) and the Northern Territory ($375,000). |
| Eligible buyers will be able to enter the market without having the standard deposit of 20% under the scheme. | Eligible buyers will be able to enter the market without having the standard deposit of 20% under the scheme. |
| Housing minister Michael Sukkar says that while there’s no set number of deposit guarantees per state, the government will keep a close eye on demand to further shape the scheme. | |
| “We’re not adding any layers of bureaucracy,” he told reporters in Melbourne. | |
| “These are guarantees that banks are able to offer to customers. The banks will undertake the same credit checks, the same lending criteria that they would otherwise.” | |
| Applicants must have earned less than $125,000 in the previous financial year as a single or $200,000 as a couple. | Applicants must have earned less than $125,000 in the previous financial year as a single or $200,000 as a couple. |
| Property Council of Australia chief executive Ken Morrison says it’s important the settings are right for off-the-plan apartments or house-and-land packages. | |
| “The scheme comes at a time of declining construction levels for new housing which has an impact on jobs, housing affordability and supply,” he said in a statement. | |
| Property price caps | Property price caps |
| NSW | NSW |
| City or large regional centre: $700,000 | City or large regional centre: $700,000 |
| Other areas: $450,000 | Other areas: $450,000 |
| City or large regional centre: $700,000 | City or large regional centre: $700,000 |
| Other areas: $450,000 | Other areas: $450,000 |
| Victoria | Victoria |
| City or large regional centre: $600,000 | City or large regional centre: $600,000 |
| Other areas: $375,000 | Other areas: $375,000 |
| City or large regional centre: $600,000 | City or large regional centre: $600,000 |
| Other areas: $375,000 | Other areas: $375,000 |
| Queensland | Queensland |
| City or large regional centre: $475,000 | City or large regional centre: $475,000 |
| Other areas: $400,000 | Other areas: $400,000 |
| City or large regional centre: $475,000 | City or large regional centre: $475,000 |
| Other areas: $400,000 | Other areas: $400,000 |
| Western Australia | Western Australia |
| City or large regional centre: $400,000 | City or large regional centre: $400,000 |
| Other areas: $300,000 | Other areas: $300,000 |
| City or large regional centre: $400,000 | City or large regional centre: $400,000 |
| Other areas: $300,000 | Other areas: $300,000 |
| South Australia | South Australia |
| City or large regional centre: $400,000 | City or large regional centre: $400,000 |
| Other areas: $250,000 | Other areas: $250,000 |
| City or large regional centre: $400,000 | City or large regional centre: $400,000 |
| Other areas: $250,000 | Other areas: $250,000 |
| Tasmania | Tasmania |
| City or large regional centre: $400,000 | City or large regional centre: $400,000 |
| Other areas: $300,000 | Other areas: $300,000 |
| City or large regional centre: $400,000 | City or large regional centre: $400,000 |
| Other areas: $300,000 | Other areas: $300,000 |
| ACT | ACT |
| $500,000 | $500,000 |
| $500,000 | $500,000 |
| Northern Territory | Northern Territory |
| $375,000 | $375,000 |
| $375,000 | $375,000 |
| Housing | Housing |
| Australian politics | Australian politics |
| Coalition | Coalition |
| news | news |
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