Great news for first home buyers around the nation with the news the senate is supporting the Federal Government’s Help to Buy housing bill.

If you’re not sure what the scheme is all about, the government-funded Help to Buy Scheme is designed to assist 40,000 low and middle income families purchase a home of their own. 

How Help to Buy works

The idea behind Help to Buy is that buyers need at least 2% deposit, with the government chipping in up to 40% of the cost of a new home and 30% of the cost of existing homes[1]. 

The government can claw back its share of the property when the property is sold by claiming its share of equity plus its stake of any profit on sale.

However, armed with the additional purchase support, a home buyer can find it a lot easier to be approved for a home loan for the balance of the purchase price. 

In this way, Help to Buy has a lot going for it. 

It lets home buyers get into the market with a very small deposit. And unlike other similar schemes, Help to Buy also means eligible buyers can have a smaller, more manageable home loan.   

What’s up for grabs?

Help to Buy was first announced in 2022, and slated to start in early 2024[2][3]. 

Obviously, that initial timeline has been missed.

What’s interesting is that Help to Buy is intended to support Australians who otherwise would not be able to purchase a home[4].

Already, thousands of people across Australia have been able to access the property market through the Home Guarantee Scheme, including through the new Regional First Home Buyer Guarantee[5].

However, by taking advantage of Help to Buy, first-time buyers are expected to have the size of the first deposit significantly reduced. 

The scheme will allow 40,000 homebuyers to co-purchase their home with the government, reducing the size of the deposit required. 

To learn more about Help to Buy speak with your local Raine & Horne property expert.

 
[1] https://treasury.gov.au/sites/default/files/2024-04/c2024-491046-ed.pdf
[2] https://anthonyalbanese.com.au/media-centre/help-to-buy-chalmers-clare
[3] https://www.pm.gov.au/media/helping-more-australians-buy-home#:~:text=The%20Government%20will%20provide%20an,in%20all%20states%20and%20territories.
[4] https://ministers.treasury.gov.au/ministers/julie-collins-2022/media-releases/help-buy-deliver-more-support-australian-homebuyers
[5] https://ministers.treasury.gov.au/ministers/julie-collins-2022/media-releases/help-buy-deliver-more-support-australian-homebuyers