Henderson pledges to reduce firm home buyers deposit

FIRST home buyers in Corangamite and the Greater Geelong region will receive a helping hand to get into the housing market through a new Morrison Liberal Government initiative to cut the amount of money needed for home loan deposits.

Corangamite federal member said saving a deposit for your first home could be a real struggle, with most banks and lenders requiring a minimum 20 per cent deposit or at the very least forcing borrowers to pay tens of thousands of dollars for mortgage insurance if they save less than that.

“From 1 January next year, a reelected Morrison Government will give Corangamite first home buyers the chance to get into the market with a deposit of 5 per cent and without the need to take out expensive mortgage insurance, through a First Home Loan Deposit Scheme,” she said.

The loans would be supported by the National Housing Finance and Investment Corporation (NHFIC).

This would allow lenders to offer loans they would otherwise turn down or would require lenders mortgage insurance on.

The scheme will be available to firsthome buyers with an income of up to $125,000, or $200,000 for a couple who are both first home buyers.

“This means, if you’re a couple earning under $200,000, or an individual earning under $125,000, and you want to buy your first home valued at $600,000, you will only need to save a deposit of $30,000, instead of $120,000,” Ms Henderson said.

“It will be capped to a house price value determined on a regional basis, reflecting the different property markets across Australia.

“The new First Home Loan Deposit Scheme together with our existing First Home Super Saver Scheme that allows Australians to save for a deposit fast through superannuation accounts, will help people achieve their goals years faster.”

Not long after it was announced, the Labor Party said it would match the Morrison government first home buyer deposit scheme pledge if elected.