Council
9 December, 2023
How to save on mortgage
Federal Member for Blair, Shayne Neumann, has welcomed the introduction of legislation into Parliament establishing the Albanese Labor Government’s new Help to Buy scheme.
The Help to Buy shared equity scheme will bring home ownership back into reach for 40,000 Australian households that have been locked out of the security and stability of home ownership.
Under the initiative, the Government will support eligible homebuyers with an equity contribution of up to 40 per cent for new homes and 30 per cent for existing homes.
Homebuyers will need a minimum two per cent deposit and will have lower ongoing repayments while they participate in the scheme, providing long-term relief.
Help to Buy is intended to support low and middle-income Australians who otherwise would not be able to purchase a home.
Mr Neumann said Help to Buy will be life-changing, bringing home ownership back into reach for prospective homebuyers in his electorate, particularly renters.
“This is one of the most significant housing reforms in a generation.
It won’t just be a leg up into home ownership with savings from a smaller deposit, it will provide long-term relief to participants in the scheme.
“In fact, Help to Buy could help eligible new homeowners save hundreds every month on their mortgage.
Help to Buy is based on existing shared equity schemes that operate in some states and territories.
However, state and territory governments will need to pass their own legislation in order for the new national scheme to operate in their jurisdictions.
All states, including Queensland, have agreed at National Cabinet to progress legislation so the scheme can run nationally from next year.
Subject to the passage of legislation in the Federal and Queensland Parliaments, the scheme was expected to commence sometime in mid-2024.
