Homebuyers up in the air despite new government home loan support
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.
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.
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: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
The Australian Prudential Regulation Authority (APRA) has announced a significant policy change aimed at enhancing the stability of the housing market. Effective from February 2026, APRA will implement a cap limiting banks to issuing no more than 20% of new home loans to borrowers with a debt-to-income (DTI) ratio exceeding six times their income. This measure applies separately to both owner-occupier and investor loans. - read more
National Australia Bank (NAB) has issued a cautionary statement regarding an anticipated increase in bad debts, attributing this outlook to mounting global instability and a fragile domestic economy. The bank expects credit impairment charges to reach approximately $706 million for the first half of 2026, marking an increase of around $300 million from previous forecasts. - read more
In a recent address at the 2026 AFR Banking Summit, Australian Prudential Regulation Authority (APRA) Chair John Lonsdale highlighted several factors that render Australia's financial system particularly susceptible to global shocks. He pointed out the nation's reliance on overseas markets for funding, its open and trade-exposed economy, and a concentrated banking industry heavily invested in residential mortgages. - read more
In February 2026, the Australian Finance Industry Association (AFIA) reported a remarkable 48% year-on-year increase in electric vehicle (EV) financing. This surge occurred despite a nearly 3% decline in the overall motor finance market, indicating a strong consumer shift towards sustainable transportation options. - read more
The Australian Prudential Regulation Authority (APRA) has implemented a significant policy change aimed at mitigating risks in the housing market. Effective from 1 February 2026, APRA has introduced a cap limiting banks to issuing no more than 20% of new home loans to borrowers with a debt-to-income (DTI) ratio exceeding six times their income. This measure applies separately to owner-occupier and investor loans, reflecting APRA's commitment to maintaining financial stability. - read more
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!
Welcome to a comprehensive guide aimed at dismantling the common myths that cloud the concepts of debt consolidation and debt reduction. Amidst widespread financial stress, debt consolidation emerges as a popular strategy for Australians in search of relief from their monetary burdens. - read more
In light of the current economic challenges facing many Australians, managing credit card debt has become more crucial than ever. With rising living costs and financial uncertainty, accruing debt on high-interest credit cards can quickly escalate from a manageable inconvenience to a stressful financial burden. - read more
Managing debt is a crucial aspect of maintaining financial well-being, yet it can often feel like a daunting task. Understanding how debt works and its potential impact on your life is the first step toward gaining control of your finances. In this section, we will delve into the intricacies of debt and outline why a solid financial strategy is essential for effective debt management. - read more
In the realm of financial wellness, tracking your monthly expenses is a crucial step towards effective debt management. Many Australians grapple with the challenges of keeping their debts under control, particularly in a dynamic economic environment. - read more
Welcome to our guide on avoiding common mistakes when consolidating debts. We're glad you're here, as taking the time to educate yourself is a crucial step towards financial well-being. - read more
