Homebuyers up in the air despite new government home loan support

⚠ The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Labor's "Help to buy" home loan scheme

Labor's centrepiece cost-of-living policy announced during the election was its Help to Buy scheme, which aimed to slash the cost of buying a new dwelling by 40 per cent and an existing one by 30 per cent.

Up to 10,000 applicants could get smaller deposits, smaller mortgages and smaller repayments.

Low-income borrowers may still find it hard to qualify for a mortgage when relying on a 2 per cent deposit, especially given that other schemes have not been successful.

Home loan qualification

The federal government concedes that saving a 2 per cent deposit won't be nearly enough for most low- to middle-income borrowers to qualify for finance to buy a home.

This is particularly so given that the mortgage might still be over $600,000 even after the government’s contribution , depending on where the home is located.”

That said, the barrier to entry for battlers may not be permanent.

NHFIC’s existing first-home loan scheme, requiring applicants to put down 5 per cent has a 90 percent success rate.

It’s not much for the desperate battler looking to buy a home, but it might provide some hope for someone in need of a loan to purchase an $800,000 home with only $16,000 instead of $40,000 deposit.

First-home buyers who don’t have government help and a 20 per cent deposit will need to pay lenders mortgage insurance.

Home loan experts

It would be essential for first home buyers to consult experts where and what to buy, especially given they will eventually need to pay back the government's equity stake, including capital growth.

It is even more important when, fundamentally, they will have to give up a significant percentage of the home equity and any value gain if they choose to sell down the track. In fact, this may prevent them from upgrading at all.

A survey of 1000 Australians found 41 per cent want the new federal government to address housing affordability, as many as those wanting an improved healthcare system, and even more than those seeking action on climate change.

Published:Sunday, 29th May 2022
Author:

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Finance News

Clear

d’Albora Marinas Expands with Tin Can Bay Marina Acquisition

22 Mar 2026: Paige Estritori

d’Albora Marinas, Australia's largest premium marina and hospitality network, has recently expanded its portfolio by acquiring Tin Can Bay Marina in Southeast Queensland. This strategic move enhances d’Albora's presence in the region and underscores its commitment to investing in premier coastal destinations. - read more

Diesel Shortage Halts Mooloolaba Fishing Operations

22 Mar 2026: Paige Estritori

Recent diesel shortages have left fishing boats stranded at Mooloolaba Wharf, posing significant challenges to local businesses and threatening thousands of jobs. The inability to access fuel has halted fishing operations, highlighting vulnerabilities in Australia's fuel supply chain. - read more

Stephen Joyce to Lead Brisbane 2032 Marine Project

22 Mar 2026: Paige Estritori

Superyacht Australia has appointed Stephen Joyce as Project Manager for the Brisbane 2032 Marine Project, a multi-year initiative designed to position Queensland and the South Pacific as premier global superyacht destinations leading up to and beyond the Brisbane 2032 Olympic and Paralympic Games. - read more

Discover Boating Australia Partners with Marinas to Promote Dry Stack Storage

14 Mar 2026: Paige Estritori

In a collaborative effort to enhance boat storage solutions, Discover Boating Australia has joined forces with key marinas in South East Queensland to launch a comprehensive Dry Stack Promotional Campaign. This initiative aims to raise awareness about the benefits of dry stack storage and promote responsible boating practices as the summer season approaches. - read more

Marinas26 Conference to Explore AI and Superyacht Strategies

06 Mar 2026: Paige Estritori

The Marina Industries Association (MIA) has unveiled the comprehensive program for Marinas26, its premier biennial conference and trade exhibition, scheduled for 24-27 May 2026 at the RACV Royal Pines Resort on Queensland’s Gold Coast. This year’s theme, 'Future Smart,' aims to delve into the transformative trends and technologies poised to redefine the marina and boatyard sectors across the Asia-Pacific region and beyond. - read more

Australian Marine Industry's Economic Output Hits $229 Billion

06 Mar 2026: Paige Estritori

The Australian marine industry has reached a remarkable economic milestone, with its output soaring to $229 billion in 2023. This 19% increase from previous years underscores the sector's robust growth and its pivotal role in the national economy. - read more

Click for more Finance News

Time to Refinance?

If you are seeking lower rates, lower fees and more flexibility in your home loan. you are in luck! Our national panel of mortgage brokers is looking forward to an opportunity to assist you. Apply online for a free eligibility assessment and one of our broker network refinance specialists will get on the case to track down the best deal for your individual circumstances. Without any obligation and at no charge to you!

... start here ...