As of today, all first-home buyers will be able to apply for a loan having saved only 5 per cent of the home price’s deposit, under an expansion of the government’s First Home Buyers’ Scheme.
Speaking on Seven’s Sunrise this morning, Housing Minister Clare O’Neil has defended the expansion of the scheme amid criticism that the changes will drive up house prices, which have increased for the eighth consecutive month.
“What the government is doing now is slashing the time that it will take first home buyers to get into the housing market. As of today, every single first home owner around the country will be eligible to get into their first home with just a 5 per cent deposit and our government’s backing. And really, this is about reshaping those home ownership opportunities that are being faced by the younger generation of Australians,” O’Neil said.
Housing Minister Clare O’Neil has defended the expansion of the government’s First Home Buyers’ Scheme. Credit: Alex Ellinghausen
Asked whether the government is on track to meet their target to build 240,000 new homes each year, O’Neil did not give a direct response.
“What I’m saying is that for the first time in 70 years, Australians have got a government at the Commonwealth level that is throwing absolutely everything at the housing crisis… What you’re seeing is our government investing $43 billion in building more homes, getting renters a better deal, and getting more Australians into home ownership. Now, is there more to be done? Absolutely,” she said.
Appearing alongside O’Neil was Nationals senator Bridget McKenzie, who slammed the government’s scheme, saying it was “making the housing crisis worse, not better,” claiming that it would both increase the likelihood that interest rates stay high and increase the demand for housing supply.
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