Through the expanded 5 per cent deposit First Homebuyer Guarantee, the Albanese Government will guarantee a portion of a first home buyer’s home loan, so they can purchase with a lower deposit and not pay Lenders Mortgage Insurance.

Under the changes to the policy, which was a signature Labor election commitment, all first home buyers will now have access, with no caps on places or income limits.

Property price caps will also be set higher in line with average house prices, opening up access to a greater variety of homes.

For the Greater Brisbane area, which includes Ipswich, the Somerset Region and Karana Downs area, price caps under the scheme have increased from $700,000 to $1 million.

With the current Ipswich median house price around $725,000 based on realestate.com.au data, the expanded scheme means a first home buyer could purchase a $700,000 home with a $35,000 deposit.

Based on Treasury analysis, this would take 7 years off the time it takes to save for a 20 per cent deposit and save around $171,500 a year in rent by buying a home sooner, as well as tens of thousands of dollars on Lenders Mortgage Insurance.

Federal Member for Blair Shayne Neumann said the Albanese Government’s expanded Home Guarantee Scheme had been hugely popular in his electorate and had already helped many people into home ownership.

“Since the Albanese Labor Government came to power, we have helped around 4,000 locals in Blair into home ownership, thanks to our expanded Home Guarantee Scheme – one of the highest rates of take-up across the country,” Mr Neumann said.

“And now we want to help more young people and first home buyers achieve the dream of home ownership sooner. Bringing the start date of our 5 per cent deposit scheme forward to 1 October will do just that.

“This is about getting more people in Ipswich, the Somerset Region and Karana Downs area into their own home quicker, while saving them money along the way.

After consulting with industry, the Government will also direct Housing Australia to promote the diversity of lenders who offer the scheme, giving first home buyers greater choice to buy a home through smaller, customer-owned and regional banks, such as Bendigo Bank and Heritage Bank, which have branches in Blair.

For more information on the 5 per cent deposits scheme, go to the Housing Australia website at https://www.housingaustralia.gov.au

Mr Neumann said the Government was tackling housing supply and affordability from a number of angles through an ambitious $43-billion housing agenda.

“We’re seeing a real turn around in home building and we’ll be speeding up housing approvals,” he said.
“On top of the more than 500,000 homes built since we came to office, home starts are now up 17 per cent on last year and the Government is rolling up its sleeves with 28,000 social and affordable homes in planning and construction.

“This has been aided by our skilled construction workforce, with more than 315 construction trade apprentices in Blair benefitting from $5,000 incentive payments.

“We’re also making it easier to rent with 18,170 renters in Blair supported by our 45 per cent increase to Commonwealth Rent Assistance in the last three years.”