Homebuyers up in the air despite new government home loan support

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Labor's "Help to buy" home loan scheme

Labor's centrepiece cost-of-living policy announced during the election was its Help to Buy scheme, which aimed to slash the cost of buying a new dwelling by 40 per cent and an existing one by 30 per cent.

Up to 10,000 applicants could get smaller deposits, smaller mortgages and smaller repayments.

Low-income borrowers may still find it hard to qualify for a mortgage when relying on a 2 per cent deposit, especially given that other schemes have not been successful.

Home loan qualification

The federal government concedes that saving a 2 per cent deposit won't be nearly enough for most low- to middle-income borrowers to qualify for finance to buy a home.

This is particularly so given that the mortgage might still be over $600,000 even after the government’s contribution , depending on where the home is located.”

That said, the barrier to entry for battlers may not be permanent.

NHFIC’s existing first-home loan scheme, requiring applicants to put down 5 per cent has a 90 percent success rate.

It’s not much for the desperate battler looking to buy a home, but it might provide some hope for someone in need of a loan to purchase an $800,000 home with only $16,000 instead of $40,000 deposit.

First-home buyers who don’t have government help and a 20 per cent deposit will need to pay lenders mortgage insurance.

Home loan experts

It would be essential for first home buyers to consult experts where and what to buy, especially given they will eventually need to pay back the government's equity stake, including capital growth.

It is even more important when, fundamentally, they will have to give up a significant percentage of the home equity and any value gain if they choose to sell down the track. In fact, this may prevent them from upgrading at all.

A survey of 1000 Australians found 41 per cent want the new federal government to address housing affordability, as many as those wanting an improved healthcare system, and even more than those seeking action on climate change.

Published:Sunday, 29th May 2022
Author:

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Finance News

Clear

The Boat Works Launches Pier 25 to Boost Marine Services

14 May 2026: Paige Estritori

The Boat Works, a prominent marine maintenance and refit facility on the Gold Coast, has commenced construction on its latest project, Pier 25. This development aims to enhance the marine services offered within the precinct by introducing new showrooms, office suites, and crew accommodations. - read more

Lloyd's Register and Echo Marine Group to Deliver Electric Ferries in WA

14 May 2026: Paige Estritori

Lloyd's Register (LR) has entered into a partnership with Echo Marine Group to support the delivery of Western Australia's first fully electric passenger ferries. This initiative marks a significant step towards sustainable public transport in Australia. - read more

RIC Introduces Marine Recovery Loan for SA Aquaculture and Fishing Sectors

14 May 2026: Paige Estritori

The Regional Investment Corporation (RIC) has announced the opening of applications for the new Marine Recovery Loan, aimed at providing financial relief to South Australian aquaculture and wild catch fishing businesses affected by a recent harmful algal bloom. - read more

MitchCap Joins Forces with BIA and BIAV to Elevate Marine Industry Financial Acumen

06 May 2026: Paige Estritori

The Australian marine industry is set to benefit from a significant boost in financial literacy and support, thanks to a new partnership between MitchCap, the Boating Industry Association (BIA), and the Boating Industry Association of Victoria (BIAV). This collaboration introduces the Industry Financial Skills and Awareness Program, designed to enhance the financial acumen of marine businesses nationwide. - read more

Club Marine Introduces Land-Based Insurance Coverage for Race Boats

06 May 2026: Paige Estritori

Club Marine, Australia's leading boat insurance provider underwritten by Allianz, has expanded its offerings to include specific coverage for race boats while they are on land. This development comes through a new partnership with the Australian Offshore Powerboat Club (AOPC), aiming to address the unique insurance needs of race boat owners during storage and transit. - read more

Click for more Finance News

Time to Refinance?

If you are seeking lower rates, lower fees and more flexibility in your home loan. you are in luck! Our national panel of mortgage brokers is looking forward to an opportunity to assist you. Apply online for a free eligibility assessment and one of our broker network refinance specialists will get on the case to track down the best deal for your individual circumstances. Without any obligation and at no charge to you!

... start here ...