Data released today by the ³Ô¹ÏÍøÕ¾ Housing Finance and Investment Corporation (NHFIC) has revealed that the Morrison Government’s First ³Ô¹ÏÍøÕ¾ Loan Deposit Scheme (FHLDS) is supporting more Australians purchase their first home sooner.
The annual Trends & Insights Report for 2020-2021 on the performance of the Morrison Government’s housing initiatives is evidence that we are on the side of essential workers, women and young Australians as they make the leap into home ownership.
Some of the key insights of the Report:
- One in five FHLDS guarantees issued went to essential workers, representing almost 6,000 key workers purchased their first home under the scheme, 34.8% of which were nurses;
- 52 per cent of FHLDS guarantees went to women, with the market average only 41 per cent women;
- 58 per cent of all buyers under the Scheme were Australians aged under 30.
- ³Ô¹ÏÍøÕ¾buyers were able to bring their home purchases forward by an average of 4 years for the FHLDS, and 4.5 years for the NHG.
Assistant Treasurer and Minister for Housing Michael Sukkar said the First ³Ô¹ÏÍøÕ¾ Loan Deposit Scheme was a runaway success and assisting Australians who traditionally struggle to get into the housing market.
“The Morrison Government’s housing programs have been an incredible success and has helped first home buyers purchase a home up to four years earlier. This means four years not paying rent, living with parents or sacrificing that avocado on toast to achieve the dream of home ownership,” Minister Sukkar said.
“It is so pleasing to see the Scheme taken up by cohorts that have found it harder to realise the dream of home ownership, including essential workers, women and younger Australians.
“The Coalition Government is absolutely committed to seeing more Australians get into their first home and the results of the First ³Ô¹ÏÍøÕ¾ Loan Deposit Scheme are extremely encouraging.
“In contrast, the Labor Party committed 10,000 affordable rental housing properties for frontline workers over 5 years. In just a year and a half, the Coalition Government has already helped nearly 6,000 frontline workers into their own home.”
The New ³Ô¹ÏÍøÕ¾ Guarantee, a component of the FHLDS, has also played an important role in stimulating construction activity, with more than three quarters of guarantees issued for house and land purchases or separate land purchase with a contract to build.
Despite increasing property prices, the amount of debt first home buyers accumulated under the FHLDS relative to incomes has declined modestly. On average, FHLDS participants recorded a debt-to-income ratio of 4.78 in 2020-21, down from 4.92 in 2019-20.
NHFIC analysis indicates home buyers were able to bring their home purchases forward by an average of 4 years for the FHLDS, and 4.5 years for the NHG.
