First home buyers to benefit from $25k bonus under federal budget
First home buyers who purchase a new property before the end of the year will be able to cash in a $25,000 grant under a program to be unveiled by Treasurer Josh Frydenberg. See what is being promised.
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First home buyers who purchase a new property before the end of the year can cash in a $25,000 grant and sign up a home loan with just a 5 per cent deposit.
The generous support will be unveiled by Josh Frydenberg on Saturday, with the federal government adding an extra 10,000 places to its first home loan deposit scheme for newly constructed houses.
Under the program, the government guarantees up to 15 per cent of the loan, so that first home buyers only need a 5 per cent deposit and can avoid paying thousands of dollars in lenders mortgage insurance.
The extra places are available until June 30, and successful applicants are also eligible for the HomeBuilder program, which provides $25,000 tax-free grants for new builds.
HomeBuilder applications must be made before the end of the year, although the government may look to expand that program in next Tuesday’s federal budget.
“Helping another 10,000 first home buyers to buy a new home through our first home loan deposit scheme will help to support all our tradies right through the supply chain including painters, builders, plumbers and electricians,” the Treasurer said.
“At around 5 per cent of GDP, our residential construction industry is vital to the economy and our recovery from the coronavirus crisis.”
A total of 9984 first home buyers were backed by a government guarantee in the first six months of this year, including one of eight first home buyers between March and June.
Another 10,000 places had already been made available for the 2020/21 financial year.
Given the new places are solely for new homes, the price cap on eligible purchases will be increased from $600,000 to $850,000 for houses in Melbourne and regional centres, and from $375,000 to $550,000 for houses in other parts of the state.
Assistant Treasurer and Housing Minister Michael Sukkar said there was an “unprecedented level of federal government assistance for home buyers and the construction industry alike”.
“The additional grants will not only help first home buyers but also support the jobs of Australia’s tradies at a time when the economy needs it most,” he said.
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