Australian Property Investor
The Labor government’s landslide election victory has ensured its signature housing policy that encourages first home buyers into the property market through a 5 per cent deposit scheme will be rolled out.
Amidst concerns the policy due to take effect on the first day of 2026 could fuel further property price hikes, first home buyers with a five per cent deposit would be able to avoid lenders mortgage insurance (LMI), which costs about $23,000 on average.
Under the scheme, 15 per cent of the property’s value would be guaranteed by the Federal Government. There will be no income caps or limits on purchase price.
The Albanese Government has acknowledged that for the program to avoid generating counterproductive property price rises additional policies must improve the dire housing supply shortfall too.
Read the article in full at Australian Property Investor.