• The Morrison Government is helping first home buyers into their first home.
  • Our First Home Loan Deposit Scheme helps eligible first home buyers purchase a house with a deposit as low as 5%.
  • First home buyers could save around $10,000 in Lenders Mortgage Insurance under our scheme.
  • Smaller lenders will be prioritised to help boost competition.
  • First home buyers with an income of up to $125,000 (or $200,000 for a couple) will be eligible.
  • This will help make the Australian dream a reality while protecting the value of homes.
  • By contrast, Labor’s Housing Tax would reduce home prices, push up rents and hurt the economy.

First home buyers are set for a significant leg up with a new initiative from the Morrison Government to slash the size of a home loan deposit.

It can take nine to 10 years for an average household to save a deposit. We want to help Australians realise the goal of buying their first home by cutting years off the time it takes to save up.

Our plan for a stronger economy means we can help secure the future of tens of thousands of first home buyers.

Under our government, more than 110,000 Australians bought their first home in 2018 - the highest level in nine years, and the First Home Loan Deposit Scheme will offer even more support with up to $500 million in the form of equity through the National Housing Finance and Investment Corporation to focus on improving housing affordability.

Getting into the housing market is a point of pride for Australians and a rite of passage. It requires hard work and even harder saving, but we want to make it that bit easier.

Complementing our First Home Super Saver Scheme, the First Home Loan Deposit Scheme will mean first home buyers won’t need to save for a full 20 per cent deposit, so Australians can get a loan and into the market faster. The Scheme will also help first home buyers save around $10,000 by not having to pay Lenders Mortgage Insurance.

The First Home Loan Deposit Scheme will be available to first home buyers who have been able to save for a deposit of at least 5 per cent.

While our First Home Super Saver Scheme has been about helping boost the savings of first home buyers and making buying a house more affordable, the new First Home Loan Deposit Scheme will help people achieve their goals years earlier.

We want to help make the dreams of first home buyers a reality.

The First Home Loan Deposit Scheme, which will start on 1 January next year, will be targeted towards first home buyers earning up to $125,000 annually or $200,000 for couples. The value of homes that can be purchased under the Scheme will be determined on a regional basis, reflecting the different property markets across Australia.

The National Housing Finance and Investment Corporation will partner with private lenders to deliver the First Home Loan Deposit Scheme, prioritising smaller lenders to boost competition.

We will also invest $25 million in the National Housing Finance and Investment Corporation to establish the Scheme and develop the expertise to conduct comprehensive research into housing demand, supply and affordability in Australia. The outcome of that research will be key to ensuring owning your own home stays within the reach of most Australians.

As well as the new First Home Loan Deposit Scheme and First Home Super Saver Scheme, our government is taking a comprehensive approach to housing affordability by:

  • Investing $1 billion in local infrastructure to unlock new housing supply in partnership with local councils through the National Housing Infrastructure Facility.
  • Setting up the first affordable housing bond aggregator to drive efficiencies and cost savings in the provision of affordable housing by community housing providers.
  • Releasing suitable Commonwealth land, including defence land, for housing development.
  • Making it easier to get from home to school and work and back with our $100 billion investment in congestion-busting transport infrastructure putting more affordable housing options within reach for first home buyers.
  • Reducing barriers for older Australians to downsize to free up larger homes for families, which commenced on 1 July 2018.
  • Stopping foreign investors from getting a free ride on the Australian housing market, and making sure they are paying the tax they owe.
  • Investing over $7 billion in housing funding and homelessness services, with the National Housing and Homelessness Agreement (NHHA) commencing on 1 July 2018 in partnership with the States and Territories.
  • Providing $4.5 billion in Commonwealth rent assistance annually.

Our plan to back first home buyers stands in stark contrast to Bill Shorten and the Labor Party who want to abolish the First Home Super Saver Scheme and jack up rents with their Housing Tax, making it more difficult for first home buyers to get into the market. If elected, Labor will pit first home buyers against their neighbours, friends and family who already own a home.

Labor’s devastating Housing Tax is a $32 billion tax grab that will hit all Australians. If you own your own home it will be worth less and if you rent you will pay more. Experts have estimated that Labor’s Housing tax would result in house prices falling by as much as 16 per cent and rents going up as much as 22 per cent.

The Morrison Government’s plan for a strong economy and records job growth will protect the value of your home and help first home buyers get into the market.