5% Deposit for FHBs

https://www.smh.com.au/federal-elec...ower-deposit-requirement-20190512-p51mha.html
This is huge... Labor has also committed to matching the same policy.
Will this have similar effect to previous stimulus for FHBs?

 

Didn’t we just have a royal commission concluding irresponsibly lenient lending practices by banks?

 

It's all ok, the government scheme is going to be funded by tax payer money.

Greedy banks need to be more responsible with deposit and shareholder money.


TB

 

Thats good news!! Price will go another 10% up. Can they introduce again this to investors in 12 months..

 

My understanding is that per annum it may only assist approx 10K people due to budget restrictions

 

Very highly unlikely. Only a small portion of people will benefit from it and I dare say there would be all sorts of qualifying rules to ensure no one can pay overs.

It’s a pre election vote attempt. When you break it down though it will likely only be available to those with incomes above 200k in which case they should be getting zero handouts. It won’t help those who actually need it.

 

It's capped at 200k hh income.
It's effectively an extension of the Keystart program in WA which has a higher 98% lvr but much lower income cap.

 

Yes correct. I believe from what I have read it is capped at $125k for singles or $250k for couples but I only read that briefly somewhere.

From what I saw, it didn't mention that it was for New or Existing property so I assume it is going to cover existing homes which wouldn't really be a stimulus for the economy as much as it would it it was only for new homes? Especially if it pushes prices up. Yes maybe a bit of extra work for brokers but not really for the trades and builders/land developers.

But hey its just a knee jerk idea that probably wont got through for a long time if ever like most last minute ideas in order to capture a few extra votes.

Anybody know if its for both existing and new??

 

Will just bring forward those fhb saving up for deposit and allow them to buy. Fhb will still be limited by servicing. So will just be a short term boost in buying in the lower end of the market. Another moot idea. Labor should have gone 20% deposit just for laughs..

 

Sounds like its a goer no matter what if you believe a word a politician says in an election campaign. I think it a fun time for REAs in the cities is coming up as all the FHB head out confidently with the government guarantee behind them only to find out that it still won’t get them close to their hipster cafes. I wonder if any brokers could comment on what % loans that pay LMI are FHB?

 

Dual income cap is 200k

 

Risks of negative equity with falling house prices.... buying OTP even more so for FHB.

 

Haven't these politicians (from both parties) heard about the subprime crisis?

 

Kerrchinkkkk!!!

 

So when (if) the value of the property goes up, the FHB would need to refinance and pay back the 15% from the equity gain?

 

They're not proposing you borrow the 15% in the first place. The offer is for the government to guarantee the 15%. Presumably when you've got equity in the property, the guarantee can simply be removed.

At this point there really isn't any useful information about the proposal, so the only real thing I can say about it is that it would bring forward some purchasers, which might push up prices, but that really depends on the scale.

 

Wonder what happens when you default and the banks need to repossess the house...

 

Or you see big falls in house prices and they just walk away with the taxpayers picking up the tab.
Does a single earning over 100k and families earning 200k need a helping hand if its only limited to 10,000 per year.
After years of denying that there is a problem , seams a bit late now unless he is just trying to save his job.

 

this will do nothing....its a ****** scheme that will come and go....the only reason labor backed it is because they don't need any unwanted attention on a non issue

 

good call marmot, do people on that income really need assistance?