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.
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.
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
|Interest rates up another 50 basis points with more hikes to come|
03 Aug 2022: .
As expected, the Reserve Bank of Australia (RBA) raised interest rates by another 50 basis points this month. The fourth rate hike in as many months, today’s decision takes the cash rate from an emergency low of 0.1% to 1.85%. - read more
|Business loans on the rise while mortgage growth remains flat|
02 Jun 2022: .
Australian business loans growth accelerated in April as mortgage growth stayed consistent, with major banks growing at less than the system average according to latest RBA data. - read more
|Homebuyers up in the air despite new government home loan support|
29 May 2022: .
The government’s promise of an equity contribution will help the most disadvantaged Australians to get a home loan, but they still won't be able to afford one. - read more
|RBA lifts official interest rate|
03 May 2022: .financialservicesonline.com.au
The Reserve Bank of Australia lifted the official cash rate by 25 basis points at its meeting Today. - read more
|Why Payday Lending Enhances Consumer Welfare|
Today, We’ll defy the critics and demonstrate why consumer welfare is enhanced within a competitive payday-lending environment. - read more
Leasing is an often misunderstood car financing option so, in response to subscriber feedback, we've included this article to help give you a better understanding of what it is and how it works. - read more
|Five Worst Credit Card Mistakes|
Credit cards can be an excellent way to manage your finances ... they can even be an investment tool. However your credit card can quickly become your enemy if not used correctly. Here are five of the worst mistakes most credit card holders make. If you can avoid these mistakes, you will benefit greatly. - read more
|Double your Home Loan Deposit in half the time|
Saving is never an easy thing to do and saving for a deposit on a home is twice as hard. However, with the right strategy in place, your savings can grow and grow, cutting the waiting time to your own home in half. - read more
|How Credit Card Balance Transfers Can Damage Your Credit Rating|
Since the banks and finance providers have been castigated for the way they seemingly indiscriminately awarded credit to people who could ill afford it, the chances of being accepted for loans and credit cards have decreased. Concurrently, there is a greater focus on individual's being aware of how credit works and what their financial behaviors means in terms of a credit score and history. - read more
|18 Hot Tips For Intending Borrowers|
If you're thinking of borrowing money to buy a car, boat, debt consolidation, home repairs, medical bills or anything else for that matter, here are some red hot tips to make the process much, much easier. - read more
|How to Buy a House with Bad Credit|
Most people would expect that a bad credit rating would make it impossible to get a mortgage to buy a home - but it's not as simple as that. Can you buy a house with bad credit? The short answer is YES, but it is not all that easy. - read more
|Co-Signing Loans - Risky Business|
There may come a time in your life when you are asked to co-sign for a loan or credit card. If this is the case, there are several things to consider before making a final decision. Technically, you are putting yourself at risk of damaging your own credit in the event that the loan goes unpaid. - read more
|Simple Tips On Getting Your Loan |
So, you want to get a loan? Here are some simple tips that might help you make more informed decisions about the type of loan you buy, and from whom. - read more