An Albanese Labor Government will invest $329 million to cut the cost of buying a home by up to 40 per cent for 10,000 Australians per year. 
 
Help to Buy is a shared equity scheme that will help home buyers to buy a home with a smaller deposit, a smaller mortgage and smaller mortgage repayments. 
 
Federal Member for Blair Shayne Neumann said that after nine long years in Government, housing affordability had only gotten worse under the Liberal-National Government, particularly for people on low and modest incomes.

“We have a housing crisis in Australia, including here in the Western Corridor and Somerset. Anyone will tell you, it’s harder to buy a home today than ever before. 

“It’s hard for younger, first home buyers and it’s hard for many older people too. 
 
“The biggest drop in home ownership has been among Australians on low and modest incomes, who have been forced to give up on the great Australian dream.

“40 years ago, almost 60 per cent of young Australians on low and modest incomes owned their own home. Now, it’s only 28 per cent,” Mr Neumann said.    
 
Mr Neumann said Labor’s Help to Buy initiative will address this and was part of Labor’s plan to tackle the housing crisis.

“In Ipswich and the Somerset Region, this will cut the cost of a mortgage on a new home by up to $200,000. 

“This will help a lot of people in this region buy a home with a smaller mortgage that they can afford to repay, instead of renting for the rest of their lives.”    

An Albanese Labor Government will provide eligible homebuyers with an equity contribution of up to 40 per cent of the purchase price of a new home and up to 30 per cent of the purchase price for an existing home.  
 
The homebuyer will need to have a deposit of 2 per cent and qualify for a standard home loan with a participating lender to finance the remainder of the purchase.   

In Ipswich and the Somerset Region, for properties valued at up to $500,000, the maximum saving on a new home purchase would be $200,000, while the maximum saving on an existing home purchase would be $150,000.

Homebuyers will also avoid the need to pay Lenders Mortgage Insurance (LMI), representing an additional saving, depending on purchase location, of potentially more than $30,000.

During the loan period the homebuyer can buy an additional stake in the home when they are able to do so and will not be required to pay rent on the stake of the home owned by the Federal Government.  

This scheme will be available not just to first homebuyers, but to other Australians who need a helping hand as well. 
 
Help to Buy will be available to Australians with a taxable income of up to $90,000 for individuals and up to $120,000 for couples. Homebuyers must be Australian citizens and not currently own or have an interest in a residential dwelling.  
 
Help to Buy will generate revenue for the Government as the Commonwealth will recover its equity and its share of the capital gain when the house is sold. 

National Housing Supply and Affordability Council

An Albanese Labor Government will also establish a National Housing Supply and Affordability Council, to ensure the Commonwealth plays a leadership role in increasing housing supply and improving affordability.

The Council will be advised by experts including from the finance, economics, urban development, residential construction, urban planning and social housing sectors. 
 
More land supply and better land use planning will improve housing affordability and provide a boost to national productivity and economic growth – but the only way to achieve this is by partnering with the States and Territories.

The Council will set targets for land supply, in consultation with States and Territories. It will also collect and make public nationally consistent data on housing supply, demand and affordability.

The Council will also have a key role in developing Labor’s National Housing and Homelessness Plan – something the Morrison Government has refused to do.

Doubling foreign investment fees and penalties

To pay for this and other housing affordability policies, an Albanese Labor Government will double foreign investment screening fees and financial penalties from 1 July 2022, raising around $445 million over the forward estimates.