Industry backs early start of federal initiative

Housing industry leaders have welcomed the start of a regional first home buyer scheme that guarantees part of a mortgage deposit.

Last Saturday. he federal government opened its Regional First Home Buyer Guarantee, which would guarantee 15 per cent of a deposit for buyers and enable them to enter the market with just five per cent of a home’s value without paying lenders mortgage insurance.

The scheme is available for 10,000 buyers a year for the next three financial years. Applicants must have lived in the regional area they are buying in for 12 months prior and be under income and property price thresholds.

Housing Industry Association chief executive of industry policy Kristin Brookfield said the guarantee would “provide a new opportunity for first home buyers in regional Australia to achieve their dream of home ownership sooner”.

“HIA has supported the First Home Guarantee program from its inception. The program continues to provide a pathway into home ownership for people who are struggling to overcome the deposit gap but could manage regular mortgage payments if they had the chance,” Brookfield said.

“The release this weekend of 10,000 new places in the program focused on regional first home buyers are a welcome addition.

“It is universally recognised that saving for a deposit is the largest obstacle to achieving home ownership.”

The policy also had support from the financial sector, with Commonwealth Bank executive general manager of home buying Michael Baumann backing the move.

“Australia’s property landscape has evolved since the pandemic, with Australians reconsidering where they live and work,” Dr Baumann said.

“As cost of living pressures also increase, some Australians are faced with the prospect of having to delay their home ownership ambitions.

“This announcement will come as a welcome relief to those regional first home buyers who have wanted to get their foot on the property ladder but haven’t previously been able to do so.”