Albanese and the Labor Party won the 2022 Federal Election by campaigning on a ticket of addressing the rising cost of living, which included a housing policy that proposed the federal government sharing up to 40 per cent of a property's purchase price with first homebuyers. An Albanese Labor Government will cut the cost of buying a home by up to 40 per cent for 10,000 Australians per year.

Help to Buy will help Australians buy a home with a smaller deposit, a smaller mortgage and smaller mortgage repayments, and it will be open to 10,000 Australians each financial year. Eligible home buyers will need a minimum deposit of 2 per cent, with an equity contribution from the Federal Government of up to a maximum of 40 per cent of the purchase price of a new home and up to a maximum of 30 per cent of the purchase price for an existing home. This would mean that for a homebuyer in Sydney, buying at the maximum price cap of $950,000 with 40 per cent equity, monthly mortgage repayments would be over $1,600 cheaper.

For a homebuyer in regional Queensland, buying at the maximum price cap of $500,000 with 40 per cent equity, monthly mortgage repayments would be over $850 cheaper. Similar schemes are already successfully operating in several states including Western Australia and Victoria. Homebuyers will not be required to pay rent on the stake of the home held by the Federal Government. Help to Buy will cost around $329 million over the forward estimates.

Am I eligible?
You will be eligible for Labor’s Help to Buy program if you meet the following criteria:

· Are an Australian citizen of at least 18 years of age.

· Earn $90,000 or less per annum for individuals, or $120,000 or less per annum for couples.

· Live in the purchased home as your principal place of residence.

· Not own any other land or property – either in Australia or overseas.

· Have saved the required minimum 2 per cent deposit of the home price and qualify (and can finance) the remainder of the purchase through a standard home loan with a participating lender.

· Pay for any associated purchase costs like stamp duty, legal and bank fees. Home buyers will also be responsible for ongoing property costs like rates, strata and any other bills.

Home buyers will also avoid the need to pay Lenders Mortgage Insurance, representing an additional saving, depending on purchase location, of potentially more than $30,000.

During the loan period the homebuyer can buy an additional stake in the home when they are able to do so. The minimum stake that a homebuyer can opt to purchase at any one time is 5 per cent.

If the home buyer’s income exceeds the Help to Buy annual income threshold for two consecutive years, they will be required to repay the Government’s financial contribution in part or whole as their circumstances permit.

Labor’s plan will open up home ownership to more Australians right across the nation – helping those who might not otherwise be able to buy. It’s another practical example of how we will help with the cost of living and deliver a better future for working families.

To pay for our housing affordability polices, Labor will double foreign investment screening fees and financial penalties. These changes will commence from July 2022 and raise around $445 million over the forward estimates.

Help to Buy is part of a suite of Labor policies designed to improve housing affordability and ownership.

This includes:

· Regional First Home Buyer Support Scheme

· Housing Australia Future Fund

· Restoring Funding for Homelands and Improving Remote Housing

· National Housing Supply and Affordability Council

Reference: https://www.alp.org.au/policies/safer-and-more-affordable-housing