Labor pledges support for 10,000 regional home buyers

By Grace Ormsby 25 March 2022 | 1 minute read

With a federal election looming, the Labor Party has unveiled part of its plan to tackle Australia’s housing crisis.

Opposition Leader Anthony Albanese, alongside Jason Clare, has revealed a scheme set to help 10,000 Australian families a year buy their first home.

The scheme, which would be implemented if an Albanese Labor government was elected into power at the upcoming federal election, would be targeted at regional families, and aims to triple the number of places that Australians living in regional areas received last year under the current First Home Loan Deposit Scheme.

According to the Opposition Leader, “regional first home buyers need and deserve their own dedicated scheme to support them to buy a home”.

Places will be reserved for Australians who have lived in that region for more than 12 months, and provide first home buyers with assistance to get into a house sooner with a 5 per cent deposit, without needing to pay lenders mortgage insurance (LMI).

“It is harder to buy a house today than ever before,” Mr Albanese conceded, noting how regional house prices had jumped, on average, by 26 per cent across 2021.

He also highlighted that a number of areas saw even higher rates of growth: Wamberal, Victoria (47.1 per cent); Terrigal, NSW (45.2 per cent); Kiama, NSW (35.7 per cent); TorquayTorquay, QLD Torquay, VIC, Victoria (34.5 per cent); Cessnock, NSW (33.3 per cent); Launceston, Tasmania (40.3 per cent); and Burnie, Tasmania (30.4 per cent).

Under the proposed scheme, first home buyers across NSW regions of Illawarra, Central Coast and Newcastle would be capped at $800,000, leading to potential mortgage insurance savings of $31,939.

Elsewhere in NSW, regional first home buyers would be capped at $600,000 – with the potential to save $23,954 on insurance costs with a smaller deposit required.

In Victoria’s Geelong, the property price cap would sit at $700,000 offering potential savings of up to $27,946.

For all other regional parts of Victoria, house prices would be capped at $500,000 – a saving of up to $14,871.

Northern Territory regional home buyers will also be able to utilise the scheme up to a value of $500,000.

In Queensland, first home buyers and residents of the Gold Coast and SunshineSunshine, NSW Sunshine, VIC Coast could use the scheme for homes up to the value of $600,000, and save up to $23,954 on LMI.

Elsewhere in the state, first home buyers could use the scheme for homes up to $450,000 – tapping into savings of $13,384.

In Western Australia and Tasmania, regional first home buyers will be capped on the purchase price of a property at $400,000 –  leading to $11,897 in potential insurance savings, while South Australian regional buyers will be able to access the scheme up to a property value of $350,000 –  and saving more than $10,000 on insurance costs.

The statement further indicated that an Albanese Labor government would “also improve the operation of the current [FHLDS] scheme by reviewing and updating the price caps on a six-monthly basis and improving the process of reallocating unused guarantees”. 

It comes one week after the federal government released its The Australian Dream report, following the inquiry into housing affordability and supply.

RELATED TERMS

Real estate

Real estate is a type of real property that refers to any land and its permanent improvement or structures that come with it, whether natural or man-made.

Real estate

Real estate is a type of real property that refers to any land and its permanent improvement or structures that come with it, whether natural or man-made.

About the author

Grace Ormsby

Grace Ormsby

Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and... Read more



Labor pledges support for 10,000 regional home buyers
spi logo

Get the latest news & updates

Join a community of over 100,000 property investors.

Check this box to receive podcast updates

Website Notifications

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