The Property Council's First Home Buyer Accelerator Loan Scheme would help first-time homebuyers of new homes or apartments by limiting deposits to five per cent and ensuring the bank charges a capped interest rate, with a government guarantee to support the lender.
That cap will be either the official RBA cash rate or five per cent, whichever is greater, for a period of five years.
The average variable mortgage rate is currently 6.51 per cent,[1] while the RBA cash rate is currently 4.35 per cent ahead of tomorrow's meeting.
Property Council Chief Executive Mike Zorbas said first homebuyers need to be given a realistic chance at accessing finance for housing.
"Helping more Australians into homes should be everyone's highest priority this coming election," Mr Zorbas said.
"With cost-of-living pressures and housing affordability consistently the two issues of most concern for Australians, the government can and should use its balance sheet to support first-home buyers and the delivery of new homes.
"Our proposal will help first-home buyers save up to $1,087 every month and $13,044 annually.
"This policy requires zero up-front government spending and would be subject to appropriate credit checks and serviceability assessments, meaning future exposure will be minimal.
"The scheme should be targeted, regularly reviewed and applied where it is driving new supply. Done right, it will help thousands of Australians onto the property ladder," he said.
As part of its Federal election platform, the Property Council is calling for pro-investment policy initiatives to address Australia's housing crisis and boost investment into and better planning of our cities.
The Property Council is also calling for:
- The establishment of a Housing Sub-Committee of Cabinet, to be chaired by the Minister for Housing and including the Treasurer and the ministers for Industry, Environment, Industrial Relations, Infrastructure and Cities
- Doubling the committed $3 billion performance-based New Home Bonus and the $500 million Housing Support Program for states and territories that surpass their targets under the National Housing Accord
- A Housing Accord related fast-track pathway for Environmental Protection Biodiversity and Conversation (EPBC) assessments with dedicated resources, experts and agreed decision making timeframes for applications that relate to residential development projects that will have homes complete by 30 June 2029
- Simple and no-cost changes to the superannuation regulatory environment to encourage greater supply-boosting investment into new homes
- More age-friendly housing supply that keeps older Australians out of taxpayer funded aged care facilities
- Better investment settings for purpose-built student accommodation (PBSA) to provide greater housing choice for students and reduce pressure on the broader rental market
