The Housing Crisis

[Bobski]

Labor proposes to let all first home buyers purchase with 5 per cent deposit

Olivia Caisley

Prime Minister Anthony Albanese is set to unveil a plan to allow all Australians looking to climb onto the property ladder to buy their their first home with a 5 per cent deposit, avoiding lenders mortgage insurance (LMI).

The proposed expansion of an existing, income-capped program would instead be made universally available for a wider range of homes by a re-elected Albanese government.

Under the landmark housing package to be unveiled on Sunday, the federal government would also put $10 billion towards building up to 100,000 homes exclusively for first homebuyers.

The plan is part of a bid to tackle Australia's housing affordability and court young voters ahead of the May 3 federal poll.

The 5 per cent deposit guarantee would allow thousands of Australians to sidestep the traditional 20 per cent hurdle, potentially slashing years off the time it takes to save for a home.

"When a young person saves a 5 per cent deposit, my government will guarantee the rest with their bank," Mr Albanese said.

"This will help people buy their first home faster, without paying the burden of Lenders Mortgage Insurance."

Mortgage and rental stress are shaping up as big issues in federal election campaign.

Some 50,000 Australians a year already access the income-capped version of the scheme, but the government expects that number will grow to nearly 80,000 after the expansion.

The commitment builds on the Albanese Government's existing $33 billion investment in housing, taking the total package to $43 billion — which Labor claims is the largest housing investment in Australia's modern history.

From January 2026, following industry consultation, every first home buyer will be eligible to purchase a home with just a 5 per cent deposit, while the government guarantees up to 15 per cent of the loan value — eliminating the need for LMI, which currently costs the average buyer around $23,000.

The government will also raise the price caps for properties eligible under the scheme to ensure it benefits a broader range of first home buyers, especially in areas like Sydney and Melbourne where average dwelling prices are much higher.

The scheme will not have income caps or a limit on the number of places available.

Sydneysiders will be able to buy their first property for as much as $1.5 million with a $75,000 deposit, while a Queenslander could purchase an $850,000 home with a $42,500 deposit.

Capital city House price limit for scheme
Sydney $1,500,000
Melbourne $950,000
Brisbane $1,000,000
Perth $850,000
Adelaide $900,000
Hobart $700,000
Canberra $1,000,000
Darwin $600,000

Regional centres within a state will have the same price limits as the state capital.

For example, Newcastle would have a $1.5 million limit to match Sydney.

Other regional areas would have smaller limits, different for each state or territory tied to the average price for housing there.

Meanwhile, the government says it will commence construction on 100,000 homes — reserved solely for first home buyers — in 2026-27, with owners able to move in from the following financial year.

The rollout will be a joint effort in partnership with states, developers, and community housing providers.

Housing Minister Clare O'Neil described the reforms as "nationally game-changing" and told the ABC that deals would be struck with the states on day one of a re-elected Albanese government to set a new course for housing.

"We've got a housing crisis in the country that's been a generation in the making," she said.

"In our first term we laid really important foundations to address the housing needs of Australians, in our second we want to go further, much further."

As the campaign trail heats up, Labor's housing policy marks one of the most significant plays yet in a contest likely to be decided by cost-of-living pressures, generational opportunity, and economic confidence.

And the choice of Perth as the backdrop for this signature policy announcement is no coincidence.

Western Australia delivered a 10.5 per cent swing to Labor in 2022, helping the party secure four additional seats in the state.

Mr Albanese hopes to repeat his success and signal the government's determination to retain — and potentially expand — its foothold there.

Source

It's good to see measures tailored specifically to first home buyers, but I question how many of them are in a position to pay off a $1.5 million mortgage with repayments of approx $2500/week, even if they are able to save (or are gifted) the $75K deposit.

People should not be encouraged to get in above their heads, and the main problem remains that house prices are simply way too high compared to median income. Someone also needs to remind the PM that not all first home buyers are "young" people.

[SBD]

Labor proposes to let all first home buyers purchase with 5 per cent deposit

Olivia Caisley

Prime Minister Anthony Albanese is set to unveil a plan to allow all Australians looking to climb onto the property ladder to buy their their first home with a 5 per cent deposit, avoiding lenders mortgage insurance (LMI).

The proposed expansion of an existing, income-capped program would instead be made universally available for a wider range of homes by a re-elected Albanese government.

Under the landmark housing package to be unveiled on Sunday, the federal government would also put $10 billion towards building up to 100,000 homes exclusively for first homebuyers.

The plan is part of a bid to tackle Australia's housing affordability and court young voters ahead of the May 3 federal poll.

The 5 per cent deposit guarantee would allow thousands of Australians to sidestep the traditional 20 per cent hurdle, potentially slashing years off the time it takes to save for a home.

"When a young person saves a 5 per cent deposit, my government will guarantee the rest with their bank," Mr Albanese said.

"This will help people buy their first home faster, without paying the burden of Lenders Mortgage Insurance."

Mortgage and rental stress are shaping up as big issues in federal election campaign.

Some 50,000 Australians a year already access the income-capped version of the scheme, but the government expects that number will grow to nearly 80,000 after the expansion.

The commitment builds on the Albanese Government's existing $33 billion investment in housing, taking the total package to $43 billion — which Labor claims is the largest housing investment in Australia's modern history.

From January 2026, following industry consultation, every first home buyer will be eligible to purchase a home with just a 5 per cent deposit, while the government guarantees up to 15 per cent of the loan value — eliminating the need for LMI, which currently costs the average buyer around $23,000.

The government will also raise the price caps for properties eligible under the scheme to ensure it benefits a broader range of first home buyers, especially in areas like Sydney and Melbourne where average dwelling prices are much higher.

The scheme will not have income caps or a limit on the number of places available.

Sydneysiders will be able to buy their first property for as much as $1.5 million with a $75,000 deposit, while a Queenslander could purchase an $850,000 home with a $42,500 deposit.

Capital city House price limit for scheme
Sydney $1,500,000
Melbourne $950,000
Brisbane $1,000,000
Perth $850,000
Adelaide $900,000
Hobart $700,000
Canberra $1,000,000
Darwin $600,000

Regional centres within a state will have the same price limits as the state capital.

For example, Newcastle would have a $1.5 million limit to match Sydney.

Other regional areas would have smaller limits, different for each state or territory tied to the average price for housing there.

Meanwhile, the government says it will commence construction on 100,000 homes — reserved solely for first home buyers — in 2026-27, with owners able to move in from the following financial year.

The rollout will be a joint effort in partnership with states, developers, and community housing providers.

Housing Minister Clare O'Neil described the reforms as "nationally game-changing" and told the ABC that deals would be struck with the states on day one of a re-elected Albanese government to set a new course for housing.

"We've got a housing crisis in the country that's been a generation in the making," she said.

"In our first term we laid really important foundations to address the housing needs of Australians, in our second we want to go further, much further."

As the campaign trail heats up, Labor's housing policy marks one of the most significant plays yet in a contest likely to be decided by cost-of-living pressures, generational opportunity, and economic confidence.

And the choice of Perth as the backdrop for this signature policy announcement is no coincidence.

Western Australia delivered a 10.5 per cent swing to Labor in 2022, helping the party secure four additional seats in the state.

Mr Albanese hopes to repeat his success and signal the government's determination to retain — and potentially expand — its foothold there.

Source

It's good to see measures tailored specifically to first home buyers, but I question how many of them are in a position to pay off a $1.5 million mortgage with repayments of approx $2500/week, even if they are able to save (or are gifted) the $75K deposit.

People should not be encouraged to get in above their heads, and the main problem remains that house prices are simply way too high compared to median income. Someone also needs to remind the PM that not all first home buyers are "young" people.

$10 billion for 100,000 houses is $100,000 per home. Is the public housing going to be stacked shipping containers?

If the housing crisis has been a generation in the making, then of course there would be two generations needing support.

If international students are flooding the private rental market, is student accommodation suitable for the single older women who need secure housing?

[gnrc_louis]

Labor proposes to let all first home buyers purchase with 5 per cent deposit

Olivia Caisley

Prime Minister Anthony Albanese is set to unveil a plan to allow all Australians looking to climb onto the property ladder to buy their their first home with a 5 per cent deposit, avoiding lenders mortgage insurance (LMI).

The proposed expansion of an existing, income-capped program would instead be made universally available for a wider range of homes by a re-elected Albanese government.

Under the landmark housing package to be unveiled on Sunday, the federal government would also put $10 billion towards building up to 100,000 homes exclusively for first homebuyers.

The plan is part of a bid to tackle Australia's housing affordability and court young voters ahead of the May 3 federal poll.

The 5 per cent deposit guarantee would allow thousands of Australians to sidestep the traditional 20 per cent hurdle, potentially slashing years off the time it takes to save for a home.

"When a young person saves a 5 per cent deposit, my government will guarantee the rest with their bank," Mr Albanese said.

"This will help people buy their first home faster, without paying the burden of Lenders Mortgage Insurance."

Mortgage and rental stress are shaping up as big issues in federal election campaign.

Some 50,000 Australians a year already access the income-capped version of the scheme, but the government expects that number will grow to nearly 80,000 after the expansion.

The commitment builds on the Albanese Government's existing $33 billion investment in housing, taking the total package to $43 billion — which Labor claims is the largest housing investment in Australia's modern history.

From January 2026, following industry consultation, every first home buyer will be eligible to purchase a home with just a 5 per cent deposit, while the government guarantees up to 15 per cent of the loan value — eliminating the need for LMI, which currently costs the average buyer around $23,000.

The government will also raise the price caps for properties eligible under the scheme to ensure it benefits a broader range of first home buyers, especially in areas like Sydney and Melbourne where average dwelling prices are much higher.

The scheme will not have income caps or a limit on the number of places available.

Sydneysiders will be able to buy their first property for as much as $1.5 million with a $75,000 deposit, while a Queenslander could purchase an $850,000 home with a $42,500 deposit.

Capital city House price limit for scheme
Sydney $1,500,000
Melbourne $950,000
Brisbane $1,000,000
Perth $850,000
Adelaide $900,000
Hobart $700,000
Canberra $1,000,000
Darwin $600,000

Regional centres within a state will have the same price limits as the state capital.

For example, Newcastle would have a $1.5 million limit to match Sydney.

Other regional areas would have smaller limits, different for each state or territory tied to the average price for housing there.

Meanwhile, the government says it will commence construction on 100,000 homes — reserved solely for first home buyers — in 2026-27, with owners able to move in from the following financial year.

The rollout will be a joint effort in partnership with states, developers, and community housing providers.

Housing Minister Clare O'Neil described the reforms as "nationally game-changing" and told the ABC that deals would be struck with the states on day one of a re-elected Albanese government to set a new course for housing.

"We've got a housing crisis in the country that's been a generation in the making," she said.

"In our first term we laid really important foundations to address the housing needs of Australians, in our second we want to go further, much further."

As the campaign trail heats up, Labor's housing policy marks one of the most significant plays yet in a contest likely to be decided by cost-of-living pressures, generational opportunity, and economic confidence.

And the choice of Perth as the backdrop for this signature policy announcement is no coincidence.

Western Australia delivered a 10.5 per cent swing to Labor in 2022, helping the party secure four additional seats in the state.

Mr Albanese hopes to repeat his success and signal the government's determination to retain — and potentially expand — its foothold there.

Source

It's good to see measures tailored specifically to first home buyers, but I question how many of them are in a position to pay off a $1.5 million mortgage with repayments of approx $2500/week, even if they are able to save (or are gifted) the $75K deposit.

People should not be encouraged to get in above their heads, and the main problem remains that house prices are simply way too high compared to median income. Someone also needs to remind the PM that not all first home buyers are "young" people.

$10 billion for 100,000 houses is $100,000 per home. Is the public housing going to be stacked shipping containers?

If the housing crisis has been a generation in the making, then of course there would be two generations needing support.

If international students are flooding the private rental market, is student accommodation suitable for the single older women who need secure housing?

The rental crisis really began during Covid, when renters decided that rather than live with three other people in a large share-house, they wanted to live alone or with one other person. The majority of international students still live in student housing rather than rentals. Airbnbs are also a driver of rental shortages in some areas.

[Bobski]

And now we have this from the LNP. Another measure that would fuel even more competition for the small number of houses available, drive prices up even higher, and it cuts out after 5 years, leaving people on the scheme careering towards a massive financial cliff.

Neither major party is willing to do anything that would piss off the investor class - of which most are members themselves - esp the LNP who rely on older voters. The only policies we are being offered are those which encourage people to get into way too much debt.

Sigh.

Coalition Leader Peter Dutton will unveil a plan to allow first-time buyers of newly built homes to be able to deduct mortgage payments from income taxes if he is elected on May 3.

The policy would mean a family on average incomes would be around $11,000 a year better off — or $55,000 over five years.

Mr Dutton is expected to announce the policy at the Coalition's campaign launch on Sunday.

Peter Dutton will super-charge his fight against Labor over housing policy with a promise that first time buyers of newly built homes would be able to deduct mortgage payments from income taxes under a Coalition government.

In what would be a controversial but historic structural change to the nation's tax system, the policy would mean a family on average incomes would be about $11,000 a year better off — or $55,000 over five years.

The ABC understands the "first home buyers mortgage deduction scheme" would be limited to five years and the first $650,000 of a mortgage.

It would also be means-tested at $175,000 for singles and $250,000 for couples.

The ABC has learned that Mr Dutton is preparing to announce the policy at the Coalition's campaign launch in western Sydney on Sunday, just hours before Prime Minister Anthony Albanese in Perth showcases Labor's plans to enable first home buyers to enter the market with a 5 per cent deposit, avoiding lenders mortgage insurance.

Coalition housing spokesperson Michael Sukkar told the ABC that the Coalition's housing policy would demonstrate that Labor's offering on housing is a "lazy Clayton's policy".

He said the Coalition, by contrast, would offer "a massive structural change to our tax system to provide a huge tax concession to encourage first home buyers, to give them the firepower in the first place".

The Coalition is expected to insist that its policy would help boost supply of housing by being linked to new construction.

"In Australia you only get a new house built if someone is prepared to commit," he said.

"The way you unlock supply is encourage someone to pre-commit to a new dwelling."

While of huge up-front benefit to first home buyers, the Coalition's scheme is likely to receive heavy scrutiny from economists and tax experts.

In most countries where mortgage interest payments are tax deductible, governments tend to claim a substantial portion of the capital gain of people's homes when they sell.

The Coalition's plan sets up a direct contest with Labor, which will also spruik its housing policy at the campaign launch in Perth today.

Labor has vowed to allow all first home buyers to purchase a property with a 5 per cent deposit, avoiding the need for lenders' mortgage insurance.

Some 50,000 Australians a year already access the income-capped version of the scheme, but the government expects that number will grow to nearly 80,000 after the expansion.

The scheme will not have income caps or a limit on the number of places available.

The government will also pledge $10 billion to go towards building 100,000 properties over eight years exclusively for first home buyers.

"The housing that is being built today is not affordable for most young people who are entering the market and that's the real problem," Housing Minister Clare O'Neil told Insiders.

"What we are doing is supplementing supply at the affordable end of the market and that's where it is really needed.

"Our government will roll up its sleeves and get involved, that is the only answer for the housing crisis confronting our country."

Ms O'Neil said it was too early for her to comment on the Coalition's policy in detail, labelling it "public policy on the run for a campaign on the slide".

"One thing I will say is we have to help young people into home ownership and I'm not sure how this policy is going to assist us to do that," she said.

"The difficulty they are facing is saving a deposit and that is why 5 per cent deposit for first home owners across the country is such a game-changer for young people."

Source