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Help To Buy Scheme

What is the “Help to Buy Scheme”?

Anthony Albanese has pledged $329 million to assist more Australians in entering the property market. The Labor government intends to pay an equity contribution of up to 40 percent of the purchase price for a new home, and up to 30 percent for an existing home. The scheme will be eligible for 10,000 households every year. 

 

The plan is to tackle the housing crisis and the following details below will show some of the advantages of the Help to Buy Scheme. 

 

  1. Under Help to Buy, home buyers will only be required to have a deposit of 2 percent (or more) to qualify for a standard home loan with a participating lender.

 

  1. During the loan period, the homebuyer can buy an additional stake in the home. The minimum stake that a homebuyer can opt to purchase at any one time is 5 percent.

 

  1. The scheme will not require borrowers to pay lenders’ mortgage insurance (LMI).

 

  1. Suppose the homebuyer’s income exceeds the Help to Buy gross annual income threshold for two consecutive years. In that case, they will be required to repay Labor’s financial contribution in part or whole, as their circumstances permit. 

 

  1. Help to Buy will help Australians buy a home with a smaller deposit, a smaller mortgage, and smaller mortgage repayments.

 

  1. This will help a lot of Australians buy a home with a smaller mortgage that they can afford to repay, instead of renting for the rest of their lives.

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