The Property Council of Australia has advised the federal government to introduce new nationwide low-deposit home loans to ease housing affordability pressures. In its pre-budget submission to the federal government, the Property Council of Australia has called for new low-deposit home loans to assist first home buyers (FHBs) who are looking to break into the market.
The council recommended that low-deposit home loans, which mirror Western Australia’s Keystart program’s loan offerings, be introduced nationally. Under the WA Keystart program, first home buyers pay deposits as low as 2 per cent for a property purchase in Perth’s metropolitan area.
The industry body urged the federal government to propose the policy in the upcoming budget to help initiate cooperation between Australia’s states and territories that will lead to policy change. According to the body, pensioners should also be encouraged to downsize by “quarantining a portion of surplus cash from the pension eligibility test” in order to free up housing for FHBs.
Moreover, the Property Council believes that the federal government should incentivise planning reform to “make housing cheaper to produce” by lowering compliance costs.
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