Property Council responds to the Low Deposit Home Loan Scheme
The Property Council has responded to the Federal Government’s proposed Low Deposit Home Loan Scheme – an initiative to help eligible first home buyers purchase a house with a deposit as low as 5 per cent.
The Property Council and our members strongly support the expansion of the National Housing Finance and Investment Corporation’s (NHFIC) functions to address major hurdles for both home buyers and policy makers: bridging the gap for first home buyers and providing nationally consistent data to better inform housing policy across states and territories.
The Property Councils submission sets out how the Government can provide further direction to NHFIC to improve the design of the Low Deposit Home Loan Scheme, to address the deposit hurdle for first home buyers, further boost support for construction sector jobs and economic growth and simplify the administration of the Scheme. The submission highlights 3 core areas where the scheme could be improved:
- Should the Scheme appear likely to be oversubscribed before 30 June 2020, targeting an additional 10,000 buyers per year – for newly built homes only and for the first two years only, to stimulate the economy and limit any wider market impacts;
- Developing a loan product that is suitable for new dwellings, recognising that the loan process, timeline and product for purchasing off-the-plan apartments or house & land packages differs to the loan process or product for established dwellings; and
- Aligning dwelling price caps with pre-existing state or territory price caps or first home buyers grant programs in the respective state or territory to maximise the impact of the Scheme and reduce the administrative complexity of setting dwelling price limits at a Federal level.
The Property Council has welcomed the opportunity to comment on this critical reform initiative, which has the potential to address one of the most significant hurdles for first home buyers and assist in stimulating much-needed economic activity nationally.
We will continue engage with the Federal Government on the Scheme’s formation and implementation.
To view the submission please click on the link below.