Powered by MOMENTUM MEDIA
subscribe to our newsletter

Fresh calls for low-deposit home loans

The Property Council of Australia has advised the federal government to introduce new nationwide low-deposit home loans to ease housing affordability pressures.

In its pre-budget submission to the federal government, the Property Council of Australia has called for new low-deposit home loans to assist first home buyers (FHBs) who are looking to break into the market.

The council recommended that low-deposit home loans, which mirror Western Australia’s Keystart program’s loan offerings, be introduced nationally.

Under the WA Keystart program, first home buyers pay deposits as low as 2 per cent for a property purchase in Perth’s metropolitan area.

The industry body urged the federal government to propose the policy in the upcoming budget to help initiate cooperation between Australia’s states and territories that will lead to policy change.

Advertisement
Advertisement

The Property Council also called for the establishment of a “National Housing Supply Council” or an equivalent body that would receive minimum funding of $2.5 million per annum.

Further, the government was urged to “identify more land disposal opportunities” to boost housing supply and implement a “build to rent asset clause”.

According to the body, pensioners should also be encouraged to downsize by “quarantining a portion of surplus cash from the pension eligibility test” in order to free up housing for FHBs.

Moreover, the Property Council believes that the federal government should incentivise planning reform to “make housing cheaper to produce” by lowering compliance costs.

Despite recent calls to scrap negative gearing, the Property Council noted that it supports the federal government’s decision to retain the existing arrangement.

PROMOTED CONTENT


[Related: Sydney drags down national home values]

Fresh calls for low-deposit home loans
mortgagebusiness

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.

Charbel Kadib

Charbel Kadib is the news editor on the mortgages titles at Momentum Media.

Before joining the team in 2017, Charbel completed internships with public relations agency Fifty Acres, and the Department of Communications and the Arts.

You can email Charbel on: This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

The prudential regulator has written to ADIs to ensure that they are proactively managing lending risks and focusing on lending standards am...

As it waits for APRA to approve its acquisition of MyLife MyFinance, Challenger has flagged plans to expand the bank’s lending remit to co...

Australia has the second-highest mortgage debt as a proportion of GDP among OECD nations, according to a new report. ...

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.