Incentives will apply additional stimulus to the housing market following federal treasurer Josh Frydenberg’s announcement of the 2021 budget.
The federal government has extended the First Home Super Saver Scheme, which means Australians can contribute up to $50,000 to their super fund to be used as a deposit. This is an increase from $30,000 when the scheme was introduced in the 2017-2018 budget.
The First Home Loan Deposit Scheme (rebranded as the New Home Guarantee) will include an additional 10,000 places so first home buyers (who are approved for the scheme) can either buy or build a new home with a deposit of 5 per cent.
Single parents will be supported to buy their own home with a 2 per cent deposit. The federal government is continuing its incentive to underwrite lenders’ mortgage insurance for this particular group of borrowers.
The government will also spend $780 million on additional stimulus to the housing market by extending the HomeBuilder scheme.
If you have thought about building your first home or taking your longterm wealth building step into property investment, now is the time to act.
credit: The Urban Developer