Scott Morrison announces new first-home buyer scheme to help battlers secure a deposit - even if they don't have the money
- Coalition has promised first home buyers support to get a 20% house deposit
- Scott Morrison announced the policy at the Liberal election campaign Sunday
- The plan will allow struggling singles and families to get into the housing market
First home buyers will get government support to get to a 20 per cent house deposit if the Coalition wins the federal election on May 18.
Prime Minister Scott Morrison announced the policy at the Liberal election campaign launch in Melbourne on Sunday, a scheme he says that has been successfully running in New Zealand for a number of years.
Under the plan, the National Housing Finance and Investment Corporation - which Mr Morrison established when he was treasurer - would guarantee the difference between five per cent of the purchase price and the 20 per cent deposit.
First home buyers will get government support to get to a 20 per cent house deposit if the coalition wins the federal election, Scott Morrison (pictured) has promised
'I want more Australians to realise the dream of owning their own home,' Mr Morrison told the party faithful.
'This will make a big difference. Cutting the time taken to save for a deposit at least half and more.'
Mr Morrison said the plan would allow singles earning less than $125,000 a year and couples earning less than $200,000 a year to get into the housing market for the first time.
The scheme would start on January 1, 2020 if a Coalition government is re-elected next Saturday.
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The dream of home ownership could become a reality for more Australians of a Coalition Government is re-elected on May 18 (stock image)
'The support would stay in place for the life of the loan,' Mr Morrison said on Sunday.
'They've got their first leg on the first rung of the ladder.'
The scheme would give preference to smaller banks and the non-bank lenders to boost competition, who will still do the normal checks on the borrowers to make sure borrowers can meet their repayments.
'This isn't free money,' Mr Morrison said.
The Coalition's proposed plan would allow singles earning less than $125,000 a year and couples earning less than $200,000 a year to get into the housing market for the first time
The scheme would run along side the government's first home supersaver scheme and other state-based initiatives.
Mr Morrison then had another dig at Labor's plan to limit negative gearing to new properties and doubling capital gains tax.
'I'll tell you what we won't do, what we won't do is undermine the value of the home you have saved so hard to buy,' he said.
Mr Morrison's proposed scheme sparked a mixed reaction from voters on social media.
Mr Morrison was joined on stage by wife Jenny and two daughters after launching the scheme
'Throwing a few more first home buyers into the fire to prop up property prices. Burn the youth. Save the rich,' one tweeted.
Another added: 'Brilliant idea however this scheme should also be for families who have not had a home for 10 years or more.There are many women that have had homes in the past but due to divorce/separation have lost their home & have not been able to save enough deposit to get back in.'
