HIA’s federal election imperatives gain support from both major parties
May 12, 2019
Housing is once again taking centre stage in this year’s federal election.
Both major parties have now committed to adopt HIA’s federal election 2019 Imperative #2 access to housing finance announcing a $500 million commitment to allow the National Housing Finance and Investment Corporation to underwrite first home buyers with a deposit of less than 20 per cent, to a minimum of 5 per cent.
The announcement also means that first home buyers with a loan to value ratio (LVR) greater than 80 per cent will no longer be required (by the banks) to pay lenders mortgage insurance (LMI). The change will save first home buyers between $5,000 and $20,000 in upfront mortgage fees and allow them to access a loan for a home much sooner than would otherwise be the case.
HIA released our federal election imperatives in early April 2019 and specifically called on all parties to consider the actions set out in Imperative #2 being to:
- Provide federal assistance for first home buyers to offset the costs of mortgage insurance for home loans where the loan to value ratio exceeds 80 per cent; and
- Through the National Housing Finance and Investment Corporation, investigate the potential implementation of a national first home buyer mortgage assistance scheme including shared equity and low interest finance, such as Keystart in Western Australian and Land Rent in the ACT.
The Liberal Party has also committed to Imperative #8 manage land supply and housing data by announcing it would provide $25 million in funding to the National Housing Finance and Investment Corporation to research demand, supply and affordability in the Australian housing market.
HIA welcomed this support by the major parties to our call for action.
We will continue in the last week of the election campaign to advocate for practical policies that improve the opportunity for first home buyers to enter the housing market in Australia because now more than ever home ownership matters to all Australians.
See HIA’s Federal Election Imperatives 2019.