Australia expands Help to Buy housing scheme for first buyers

The federal government plans to spend $800 million to expand its Help to Buy housing scheme. This initiative is designed to assist first home buyers with lower deposits and smaller mortgages. The total budget for the program will reach $6.3 billion and aims to help around 40,000 Australians enter the housing market. Under the Help to Buy scheme, the government will provide financial support to first-time buyers. For existing homes, it will cover 30% of the loan. For new builds, it will contribute up to 40%. The government states that this program will help buyers save significantly on monthly payments. Applications for the Help to Buy initiative are expected to open later this year. Eligible applicants must have incomes below the new caps, which are $100,000 for singles and $160,000 for couples. The scheme also sets limits on property prices based on location. For instance, in Sydney, the cap is $1.3 million, while in Brisbane and Canberra, it is $1 million. Other cities have lower limits, with prices decreasing as the cities get smaller. Though the initial funding is substantial, the government notes that this may be adjusted in the future. This funding increase is not due to overspending in previous budgets but is aimed at accommodating more applicants. The government also has a broader plan to build 1.2 million new homes in the next five years, including affordable options. Additionally, the government will impose a two-year ban on foreign property investors to make more homes available to Australians. There will be some exceptions to this rule, including investments that significantly boost housing supply. The Australian Taxation Office is set to receive funding to enforce this ban and ensure compliance. Overall, the government is taking significant steps to improve access to housing for Australians, tackle homelessness, and increase the number of homes built across the country.