Homebuyers up in the air despite new government home loan support
Homebuyers up in the air despite new government home loan support
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
The government's promise of an equity contribution will help the most disadvantaged Australians to get a home loan, but they still won't be able to afford one.
Labor's "Help to buy" home loan scheme
Labor's centrepiece cost-of-living policy announced during the election was its Help to Buy scheme, which aimed to slash the cost of buying a new dwelling by 40 per cent and an existing one by 30 per cent.
Up to 10,000 applicants could get smaller deposits, smaller mortgages and smaller repayments.
Low-income borrowers may still find it hard to qualify for a mortgage when relying on a 2 per cent deposit, especially given that other schemes have not been successful.
Home loan qualification
The federal government concedes that saving a 2 per cent deposit won't be nearly enough for most low- to middle-income borrowers to qualify for finance to buy a home.
This is particularly so given that the mortgage might still be over $600,000 even after the government’s contribution , depending on where the home is located.”
That said, the barrier to entry for battlers may not be permanent.
NHFIC’s existing first-home loan scheme, requiring applicants to put down 5 per cent has a 90 percent success rate.
It’s not much for the desperate battler looking to buy a home, but it might provide some hope for someone in need of a loan to purchase an $800,000 home with only $16,000 instead of $40,000 deposit.
First-home buyers who don’t have government help and a 20 per cent deposit will need to pay lenders mortgage insurance.
Home loan experts
It would be essential for first home buyers to consult experts where and what to buy, especially given they will eventually need to pay back the government's equity stake, including capital growth.
It is even more important when, fundamentally, they will have to give up a significant percentage of the home equity and any value gain if they choose to sell down the track. In fact, this may prevent them from upgrading at all.
A survey of 1000 Australians found 41 per cent want the new federal government to address housing affordability, as many as those wanting an improved healthcare system, and even more than those seeking action on climate change.
Published:Sunday, 29th May 2022 Author:
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
APRA’s decision to keep the mortgage serviceability buffer at 3 percentage points is a timely reminder that loan approval is still being judged on resilience, not just today’s advertised interest rate. The buffer requires regulated lenders to test whether borrowers could still manage repayments if rates were materially higher than the loan rate being offered. - read more
The Reserve Bank of Australia’s latest policy commentary has reinforced a message that borrowers cannot afford to ignore: interest rate relief is not something to build a budget around too early. While inflation has eased from its peak, the central bank remains alert to price pressures, wage growth, productivity challenges and the possibility that demand may prove more resilient than expected. - read more
Australian borrowers comparing personal loans in July are facing a market where the headline rate can tell only part of the story. Canstar’s latest personal loan update, published on 21 July 2026, shows some competitive rates remain available, but the gap between the cheapest and most expensive unsecured offers is still substantial. - read more
The latest Reserve Bank of Australia lending rate data gives small business owners a timely reminder: the cost of finance is still highly dependent on borrower profile, loan size, security and lender appetite. For May 2026, the average rate on new small business loans sat at 7.26% per annum, compared with 6.12% for medium businesses and 5.49% for large businesses. - read more
The latest Reserve Bank of Australia financial aggregates show that borrowing demand has remained resilient, with business credit again leading the way. Released on 30 June 2026, the May figures show total credit rising by 0.7% over the month and 8.2% over the year. Within that, lending to non-financial businesses rose 1.0% in May and 9.9% across the year, outpacing both housing and personal credit. - read more
If you are seeking lower rates, lower fees and more flexibility in your home loan. you are in luck! Our national panel of mortgage brokers is looking forward to an opportunity to assist you. Apply online for a free eligibility assessment and one of our broker network refinance specialists will get on the case to track down the best deal for your individual circumstances. Without any obligation and at no charge to you!
Navigating the complexities of loan repayments can be daunting, but understanding the components and their impact on our financial health is essential. In Australia, a wise approach to loan repayment not only alleviates financial strain but directly influences our credit scores and future borrowing capacity. - read more
For many Australians, taking out a loan is a key step towards achieving personal and financial milestones, whether it's purchasing a home, investing in education, or starting a business. However, the excitement of these life events can be overshadowed by the complexity of loan agreements. Understanding the terms of a loan is not just about ticking off legal requirements—it's about ensuring financial stability and making informed decisions that align with one's financial goals. - read more
Pre-approval in the financial world refers to a preliminary evaluation by a lender to determine how much credit or loan they may be willing to extend to an applicant. It's a vital step for any Australian looking to finance a significant purchase such as a home or a car. Essentially, pre-approval provides potential borrowers with an indication of their borrowing capacity, subject to final verification and approval. - read more
Financial literacy refers to the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing. It's an essential skill set that can significantly impact an individual's financial well-being throughout their life. - read more
No comments yet. Be the first to share your thoughts.