Shadow Minister for Housing and Homelessness Jason Clare said the First Home Loan Deposit Scheme (FHLDS) needs to be expanded to include the building of homes, which would in turn support tradies. 

"Labor is calling on the Morrison Government to expand the scheme by lifting the cap for first home buyers who build new homes," Mr Clare said in a statement. 

"This will assist first home buyers on low and middle incomes build a new home with a deposit of as little as 5% without the requirement to pay for lenders mortgage insurance, and keep tradies building homes instead of building a longer dole queue."

"Labor called for this on 30 May but it was ignored by the Government in its HomeBuilder scheme which has been panned as badly targeted and too small to save a lot of tradie jobs."

Buying a home or looking to refinance? The table below features home loans with some of the lowest variable interest rates on the market for owner occupiers.

Update resultsUpdate
Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
$2,408
Principal & Interest
Variable
$0
$530
70%
 Featured Online ExclusiveUp To $4K Cashback
  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
5.99% p.a.
5.90% p.a.
$2,396
Principal & Interest
Variable
$0
$0
80%
 Featured Apply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
6.14% p.a.
6.16% p.a.
$2,434
Principal & Interest
Variable
$0
$250
60%
 Featured Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

The FHLDS was launched on January 1 of this year and can assist first-home buyers in securing a home loan with a deposit of 5% by guaranteeing up to 15% of the value of the home, saving buyers from the cost of Lender's Mortgage Insurance (LMI). 

The scheme was capped at 10,000 places which were filled entirely after five months, and the next round of the scheme opens on 1 July with another 10,000 places up for grabs over the next 12 months.

Mr Clare said the housing construction industry would fall off a cliff if the FHLDS wasn't expanded, in addition to a range of other measures.

"Labor has repeatedly called on the Morrison Government to ensure that their construction support package included:  

  1. Construction of more social housing;
  2. Repair and maintenance of existing social housing;
  3. Construction of more affordable rental accommodation for frontline workers;
  4. Expansion of the First Home Loan Deposit Scheme for new builds; and
  5. Grants to first home buyers who build their first home.

"The Government needs to pull their head out of the sand, expand this scheme and help save the jobs of thousands of Aussie tradies." 

HomeBuilder in disarray?

Prime Minister Scott Morrison announced the HomeBuilder scheme on June 4 to a chorus of criticism, and three weeks later the scheme is yet to kick into gear.

Each state and territory is responsible for administering the scheme but to date only Tasmania and South Australia have signed on. 

Minister for Housing Michael Sukkar said in a statement that HomeBuilder had been designed to complement each state and territories various existing housing grants and concessions.

"The Commonwealth is engaged at present with state and territory governments on the national partnership agreements to make the delivery of the HomeBuilder as seamless as possible," Mr Sukkar said.

A spokesperson for Queensland Treasurer Cameron Dick told the ABC he had expressed concerns about the design and implementation of the scheme.

"The Queensland Government supports the intent of the policy and is seeking to resolve the remaining issues around administration," the spokesperson said.

"We're continuing to work with the Federal Government to resolve those matters as quickly as possible."



Ready, Set, Buy!


Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!

With bonus Q&A sheet and Crossword!

Download Free
By subscribing you agree to our privacy policy