The race to win over first home buyers is heating up – fast.
With housing affordability still front of mind for voters, both major parties are pitching bold plans to help Australians break into the property market.
Labor has promised to expand its Home Guarantee Scheme if re- elected, giving every first home buyer access to a 5 per cent deposit, regardless of income or place caps.
According to McEwen MP Rob Mitchell more than 1,200 people in his electorate have already benefited from the scheme’s low-deposit model, and Labor said thousands more could save $23,000 by avoiding Lenders Mortgage Insurance.
“If we’re re-elected, no more ticking clocks or moving goalposts for first home buyers,” Minister for Housing Clare O’Neil said.
“We’re taking serious steps to give more Australians the security of a home they can call their own.”
In addition, Labor has pledged to build up to 100,000 homes exclusively for first home buyers, shielding them from investor competition and using South Australia’s model as inspiration.
But the opposition is also chasing the keys to young voters’ hearts.
Liberal leader Peter Dutton has unveiled a rival plan allowing first home buyers who purchase new builds to deduct the interest component on the first $650,000 of their mortgage for five years.
The scheme is means-tested, with income caps set at $175,000 for singles and $250,000 for couples.
On top of that, the coalition would allow Australians to dip into their superannuation – up to $50,000 – to go towards a deposit on their first home.
Mr Mitchell said Labor’s housing announcement would “build on real results,” pointing to the 1,200 locals already helped by the scheme.
“With Labor’s announcement, even more people will now be able to get into a home of their own,” he said.
