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Question Time: Housing Market
Mr SIMMONDS (Ryan) (15:04): My question is to the Assistant Treasurer and Minister for Housing. Will the minister please update the House on how the Morrison government is building an even stronger Australia by supporting Australians into their first homes in the First Home Loan Deposit Scheme?
Mr SUKKAR (Deakin—Assistant Treasurer and Minister for Housing ) (15:05): I thank the member for Ryan for his question. The member for Ryan is a champion for first home buyers in his electorate, as are all members on this side of the House. The Morrison government’s focus and commitment to support first home buyers is successfully helping more Australians get into a home sooner. Indeed, the latest ABS lending indicators highlight that the broad recovery that we’re seeing in the Australian property market has been underpinned by first home buyers. They are driving the recovery in housing. Mortgage approvals for first home buyers were up by 6.2 per cent month on month, which is the best outcome in a decade.
I’m pleased to report to the House that it’s just over a month since the Morrison government’s pre-election commitment to establish the First Home Loan Deposit Scheme was successfully commenced. The First Home Loan Deposit Scheme, importantly, allows prospective first home buyers to purchase a property with a government guarantee with a deposit of as little as five per cent, because we know that for first home buyers one of the biggest struggles is getting the deposit together. More and more, banks are requiring deposits of 20 per cent, which are incredibly difficult to save for. So, with the Morrison government’s First Home Loan Deposit Scheme, people can get into the market with as little as a five per cent deposit.
Since the scheme’s commencement just over a month ago, nearly 6,000 places under the scheme have been reserved, and 3,000 places have progressed to pre-approval. The member for Ryan would be very pleased to hear that in his home state of Queensland over 700 first home buyers have already received a pre-approved place under the scheme. It’s over 1,100 first home buyers in New South Wales, 800 in Victoria, 150 in WA, 150 in South Australia, over 100 in Tasmania and over 100 in the ACT and the Northern Territory. It’s very pleasing that these places have been distributed throughout the country in cities, regional centres and rural areas. Also, the scheme is reaching the Australians our Prime Minister wanted to reach: people on middle incomes. Among those who have obtained a pre-approved place under the scheme, the average income is $67,000 for singles and $110,000 for couples, which means the scheme is really hitting and assisting the areas of the economy that we want it to. So the Morrison government, like all Liberal and Nationals governments, is the best friend of first home buyers, and we will continue to be so.