What election result means for home buyers

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With the Federal Election done and dusted, what can prospective home buyers expect from the new Labor government under Anthony Albanese?

From a finance broking perspective, one of the most fascinating debates during the election campaign was over the Coalition’s proposal to allow first time buyers to use part of their superannuation for a housing deposit.

We won’t see this pushed forward by Labor with so many super funds controlled by their union mates, although the question of allowing super to be used for a home loan deposit contribution has been tossed around for many years and is unlikely to go away.

With the nation facing a rising interest rate environment amid a continuing strong property market, a key focus of Labor has been on housing affordability and improving opportunities to achieve home ownership.

Labor has committed to a new Help to Buy scheme, involving an equity contribution from the Federal Government of up to a maximum of 40 per cent of the purchase price of a new home (and up to a maximum of 30 per cent of the purchase price for an existing home) for 10,000 Australians each financial year. Home buyers would need at least a two per cent deposit.

Help to Buy would be restricted to Australians with a taxable income of up to $90,000 for individuals and up to $120,000 for couples. Applicants would need to be Australian citizens who are not current homeowners, either in Australia or overseas. The scheme would not be restricted to first home buyers.

Labor also proposes a Regional First Home Buyer Support Scheme, which will provide a government guarantee of up to 15 per cent for eligible first home buyers, so that locals with a five per cent deposit can avoid paying mortgage insurance.

Also on the table is the $10 billion Housing Australia Future Fund, which will build 30,000 new social and affordable housing properties in its first five years.

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