The Australian Financial Report has been updated to include the details of the Government’s first mortgage discount scheme for first homebuyer families.
The scheme will allow a first home buyer to get a 10% down payment off their mortgage up to $5.1 million in the first year.
It is also designed to offer lower monthly payments compared to the Government-backed scheme.
It will provide $4,000 down payment assistance to first home buyers, which are able to qualify for the discount through the Government.
A second 10% savings scheme will be offered to first and second homebuyners who are able, through their financial assistance package, to qualify and can afford the monthly payment.
The Government is looking at making the discount available to people in households with incomes between $50,000 and $80,000.
The first home owners are eligible to apply through the Financial Services Council of Australia.
It comes as Treasurer Scott Morrison announced a $500 million boost to the state’s housing affordability programme, which has been criticised by some critics as a giveaway to wealthy buyers.
Prime Minister Scott Morrison says a mortgage discount is key to helping first home owner families get on the housing ladder.
The discount is a ‘blessing for first-home buyers’, Mr Morrison said.
“We’re looking at helping first- home buyers who might not be able to get on that ladder to get the mortgage and be able start on that path,” he said.
A $500m boost for the state housing affordability schemeThe Federal Government has committed to giving away $500M to state and territory governments over the next two years to support low-income housing.
The $500million is part of a $5bn package of funds for states and territories to support the development of new, affordable housing.
It’s the third major package announced this year, including a $1.1bn investment in affordable housing and $3bn for local communities.
Mr Morrison said the $500bn was a “blessed” investment.
“The $5 billion is part and parcel of a program that is already a world-leading, nationally-funded program to build more affordable housing,” he told ABC radio.
“And we’re going to continue to build on that in future.”