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New Government… New Developments in Housing in the Hunter
WORDS DI VON ESSEN We heard all the pre-election promises when it came to housing – it seemed like every day there was a different announcement aimed at first-time homeowners, retirees or investors. But now the dust has settled, and we have a new Government in place – what will it mean for our housing market?
The Labor Government's Help To Buy scheme aims to provide an equity contribution of up to 40 per cent for eligible low to middleincome homebuyers, with only a two per cent deposit saving required. But low-income borrowers may still struggle to qualify for finance under the housing affordability scheme,
according to one of the nation's most awarded mortgage brokers ‒ 2021 Australian Mortgage Awards Independent Broker of the Year and Zippy Financial Director and Principal Broker Louisa Sanghera. "Existing schemes that only require a two per cent deposit have proven mostly unsuccessful for prospective lower-income homeowners. While the Help To Buy scheme is commendable, borrowers attempting to tap into existing policies that reportedly only require a two per cent deposit, such as the Family Home Guarantee for single parents, have still not been able to secure finance in our experience because of their lower incomes," Ms Sanghera said. "In my experience, saving a two per cent deposit won't be enough for most low- to middle-income borrowers to secure finance, especially when their mortgage might still be $650,000 after the government's equity stake, depending on their location." Ms Sanghera said borrowers wanting to apply for the Help To Buy program should try to save more funds to put towards their deposits as well as reduce credit card limits and debts to improve their chances of qualifying for a mortgage. Continued next page ▶
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