McCORMACK BACKING FIRST-HOME BUYERS IN THE RIVERINA AND CENTRAL WEST

LOCAL residents looking to buy their first home will be given a helping hand to get into the housing market through a new Liberal and Nationals’ initiative to slash upfront deposit costs on home loans.

Riverina Nationals’ MP and Deputy Prime Minister Michael McCormack said the Federal Government understands the difficulties in saving for your first home and is delighted to be able to offer real support for those in the Riverina and Central West who are looking to purchase their first home.

 “From 1 January next year, a re-elected Liberal and Nationals’ Government will provide first-home buyers the opportunity to get into the market with a 5 per cent deposit, instead of the 20 per cent most lenders require,” Mr McCormack said.

“The First Home Loan Deposit Scheme will also eliminate the need for first-home buyers to take out expensive mortgage insurance.

“We know saving that 20 per cent can be a struggle and mortgage insurance can cost thousands of dollars; that’s why we will deliver this initiative to help more people achieve the dream of purchasing their first home.”

The loans would be supported by the National Housing Finance and Investment Corporation (NHFIC). This will allow lenders to offer loans they would otherwise turn down or would require lenders mortgage insurance on.

The scheme will be available to first-home buyers with an income of up to $125,000, or $200,000 for a couple who are both first-home buyers.

It will be capped to a house price value determined on a regional basis, reflecting the different property markets across Australia.

The new First Home Loan Deposit Scheme together with our existing First Home Super Saver Scheme which allows Australians to save for a deposit quicker through superannuation accounts, will help people achieve their goals years faster.

Last year 110,000 Australians bought their first home, the highest level in nine years. We want to build on this result.

“We are backing first-home buyers,” Mr McCormack said.

“This is in stark contrast to the Labor Party who want to get rid of the First Home Super Saver Scheme and increase rental costs with their Housing Tax.”

Labor’s devastating Housing Tax is a $32 billion tax grab that will hit all Australians.  If you own your own home it will be worth less and if you rent you will pay more. Experts have estimated that Labor’s Housing Tax would result in house prices falling by as much as 16 per cent and rents up as much as 22 per cent.

The Liberal and Nationals’ Government is delivering on its plan for a strong economy and record job growth which will protect the value of your home and help first-home buyers get into the market.