Deposit free loans with no lender’s insurance is one item up for grabs under new government initiatives to boost the housing industry.
Those looking to purchase property cheaply in the Northern Territory will benefit from two housing initiatives launched yesterday, however investors will see an easing of rental pressure due to an increase in supply.
With banks having stricter lending practices that are limiting housing developments, resulting higher rents are making it difficult for property buyers to move from renting to owning, said treasurer Delia Lawrie.
“The scheme will act as stimulus to housing supply by bringing forward land release and unit developments as it provides the finance for pre-sales where the banking sector has tightened credit,” Ms Lawrie said.
The two new initiatives, My New Home and Homestart Extra, should both offer extra incentives to get into the market.
My New Home allows buyers to purchase property with no deposit and no lender’s insurance for properties up to $750,000.
Homestart Extra, an extension on the Homestart shared equity scheme, allows shared equity to be increased from 30 per cent to 50 per cent, or $200,000, as well as increasing fee assistance loans to $15,000.
The introduction of these initiatives has been welcomed by the Urban Development Institute (UDIA) of the Northern Territory.
UDIA president Kerry Osborne said that members of the institute had previously been having difficulty securing project financing due to the tight post-GFC lending environment.
“The UDIA fully support this initiative and look forward to the positive outcomes for Territorians,” Mr Osborne said.