Help To Buy Goes Live

A national scheme aimed at helping more Australians get onto the property ladder has begun – but not in every state.

The long-awaited Federal Government’s Help to Buy scheme was first announced two years ago.

Under the scheme, the federal government will contribute up to 40% of the purchase price for new homes or 30% for existing ones.

It is designed to support up to 40,000 eligible Australians over the next four years, allowing buyers to enter the market with a deposit as low as 2% without paying lenders mortgage insurance.

Although the Federal part of the scheme is now open, accessibility depends on whether enabling legislation has been implemented at the state and territory level.

Western Australia and Tasmania have not implemented enabling legislation.

The Western Australia State Government has a bill to enable the scheme, but it is yet to be listed for a vote in the Upper House.  It is now trying to push to introduce it before the Upper House breaks for the year.

Housing Industry Association executive director – Tasmania, Benjamin Price, has urged the Tasmanian government to implement the scheme.

He says its refusal to participate is putting local buyers at a disadvantage by instead persisting with its MyHome scheme.