Prime Minister Scott Morrison announced the ‘The First Home Loan Deposit Scheme’ will be available to first home buyers who have been able to save for a deposit of at least 5 per cent.

Under the plan, the National Housing Finance and Investment Corporation would guarantee the difference between five per cent of the purchase price and the 20 per cent deposit.

First home buyers will get government support to get to a 20 per cent house deposit.

The PM said all the normal checks would apply to borrowers to make sure they could meet their expanded payments.

The scheme is based on the belief it is the deposit gap rather than the size of mortgage payments that is the real barrier to home ownership.

The scheme, adopted from a 2015 New Zealand scheme, would allow singles earning less than $125,000 a year and couples earning less than $200,000 a year to get into the housing market in quick time.

Source : Jonathan Chancellor Founder/ Editor at large –  Propertyobserver.com.au