With housing affordability set to be a key election issue, the 2022 federal budget expands the scheme the Coalition put forward at the 2019 election to help first home buyers.
The First Home Loan Deposit Scheme helps those without the standard 20% deposit required by mortgage lenders. For those who qualify, it guarantees up to 15% of a loan’s value, meaning buyers can secure a home loan with a 5% deposit.
In the 2021-22 financial year the scheme was capped at 10,000 places. The 2022 budget is expanding this to 35,000 a year, plus an extra 10,000 places for first home buyers in regional areas.
