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Deposit scheme wins extension | The West Australian

In good news for first-time buyers, an additional 10,000 allocations have been added to the Federal Government’s already popular First Home Loan Deposit Scheme. This is the second time the scheme has been extended since its introduction.

In partnership with the National Housing Finance and Investment Corporation, the First Home Loan Deposit Scheme has already helped almost 20,000 first homebuyers purchase a home this year.

An additional 10,000 places will be provided to support the purchase of a new home or a newly built home.

Under the existing First Home Loan Deposit Scheme, eligible first homebuyers can purchase a modest home with a deposit of as little as five per cent.

The additional guarantees will be available until June 30, 2021.

“By increasing the number of people eligible for the First Home Loan Deposit Scheme by 10,000 –focusing on new home builds – and raising the price thresholds, the government has opened the door to a larger group of first homebuyers,” Housing Industry Association Managing Director Graham Wolfe said.

“Research by JWS Research in 2018 clearly showed that homeownership is one of the top three issues Australians care most about – improving homeownership rates with sensible and targeted measures can make a real difference for first homebuyers and help deliver on the nation’s economic recovery from our current COVID-19 recession.

“The government is listening to industry. Combined with the confidence-boosting business investment incentives, these measures will go a good way to helping Australians during these unprecedented times to secure a job and achieve their dream of homeownership.”

Master Builders Australia CEO Denita Wawn said the scheme would help thousands of people enter the property ladder, while unlocking further activity in the residential building sector to support growth and employment.

In more good news, the price caps have also been raised from $400,000 to $550,000 in Perth and from $300,000 to $400,000 across the state.

National Australia Bank Executive Homeownership Andy Kerr said the bank had already supported 2700 Australians through the scheme.

“It’s been great to see incredible interest in the scheme, and we continue to hear stories of customers right across Australia buying a home much earlier than they thought possible,” he said.

“In many cases it has given hope and confidence to people who have been working hard for many years to save a deposit and enter the property market.”

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