First home buyers prepare to cash in as the government offers generous $25,000 grants and add an extra 10,000 places to its first home loan deposit scheme
First home buyers looking to secure a home before the end of the year can get a $25,000 cash boost and score a loan with a five per cent deposit.
The support program will be announced by treasurer Josh Frydenberg on Saturday and will apply to newly constructed houses.
Under the plan, an extra 10,000 applicants will gain access to the first home loan scheme where government guarantees 15 per cent of the deposit.
It allows prospective buyers to avoid sinking thousands into mortgage insurance, which is normally applied to deposits less than 20 per cent.
Under the plan, an extra 10,000 applicants will gain access to the first home loan scheme where government guarantees 15 per cent of the deposit
The support program will be announced by treasurer Josh Frydenberg on Saturday and will apply to newly constructed houses
Successful applicants will also be able to apply for the HomeBuilder program which gives prospective buyers $25,000 for new properties.
While HomeBuilder applications are due by the end of the year, the government may extend the scheme in Tuesday's budget.
Deposit scheme positions are open until from October 6 until June 30, 2021.
'Helping another 10,000 first home buyers to buy a new home through our first home loan deposit scheme will help to support all our tradies,' Mr Frydenberg said.
'At around five per cent of GDP, our residential construction industry is vital to the economy and our recovery from the coronavirus crisis.'
While HomeBuilder applications are due by the end of the year, the government may extend the scheme in Tuesday's budget
He also explained the measures would support local construction jobs across the sector.
Price caps on eligible homes will also be increased in Sydney to $950,000 in Victoria to $850,000.
Caps for new homes in Western Australia, South Australia, the Northern Territory and Tasmania will increase to $550,000.
Lower caps will apply in regional areas.
To be eligible, all applicants must be first home buyers who have earned less than $125,000 for singles and $200,000 for couples.