Federal parliament will consider legislation that aims to provide assistance to thousands of Australians aspiring to purchase a home.
The upcoming “Help to Buy” legislation, set to be introduced this week, aims to offer support to 40,000 eligible homebuyers.
The government will provide an equity contribution of up to 40 per cent for new homes and 30 per cent for existing homes, with homebuyers required to have a minimum deposit of two per cent.
Additionally, participants in the scheme can expect lower ongoing repayments during their participation in the program.
For the initiative to take effect in a particular state, that state must pass its own legislation. The program will kick off in the Northern Territory and ACT once the Commonwealth legislation has been approved.
However, the government said all states agreed at National Cabinet to progress legislation so the scheme will run nationally from next year.
Housing Minister Julie Collins said the scheme will be life changing.
“Right across the country Help to Buy will be life changing, bringing home ownership back into reach for thousands of Australians, particularly renters,” she said.
“It won’t just be a leg up into home ownership with savings from a smaller deposit – it will provide long-term relief to Australians who are part of the Scheme.
“In fact, Help to Buy could help eligible new homeowners save hundreds every month on their mortgage.
“Our government has already helped more than 86,000 people into home ownership, and Help to Buy will mean even more Australians have this opportunity.
“Our ambitious housing reform agenda is working across the board – more help for homebuyers, more help for renters and more help for Australians needing a safe place for the night.”