What does the labour win mean housing and your mortgage?
What an election that was, with Labour sweeping to a landslide victory. In this post we look at what it means for housing, your mortgage and what you should do.
Labour’s Policies
Increasing housing supply
Labour’s goal is to improve the affordability of house by committing to building 1.2m homes in the next 5 years.
Helping First Home Buyers (FHB). They’ve introduced 3 measures to get more FHB into the market
First Home Guarantee (FHBG): Income limits under the FHBG will be abolished, meaning any eligible first home buyer can purchase a home with just a 5% deposit, regardless of their income.
Help to Buy (due late 2025): This scheme will allow eligible first-home buyers to enter the market with just a 2% deposit without needing to pay lenders mortgage insurance (LMI). The government will take an equity stake of up to 30% for an existing home and up to 40% of the purchase price of a new build.
100,000 homes built for first-home buyers: Labor said it would commit $10 billion to build 100,000 homes exclusively for purchase by first-home buyers. The plan for the construction spans eight years.
Apprentice incentive payments
Apprentices will receive up to $10,000 in priority areas, such as construction, as an incentive to complete their training. Labour says it will fast-track the qualification of 6,000 tradies to help build more homes across Australia.
Foreign investors banned
International buyers are banned from purchasing property in Australia for two years. While less than 1% of property is bought by foreign investors, it may impact demand and prices in key locations.
Housing Australia Future Fund
30,000 new social and affordable homes will be built over 5 years to support essential workers (teachers, nurses).
Who needs to take action?
First home buyers: You’re the big winners. Now’s a great time to step in with 2 schemes available for you. You could get into the market sooner. There’s some devil in the detail with the policies, so have a chat to see how it impacts you.
Investors: Review your portfolio or look for where the best opportunities are. Why? WIth 1.2m properties entering he market returns may vary in coming years.
Refinancers: There was no mortgage relief for you. So check your current mortgage rate to see if you could save.
We’re here to help:
Not all banks treat these rules the same: Each lender has different policies, and we’ll help you navigate this.
Call Will on 0414 877 724 or will@ladderfs.com.au and he’s happy to have a chat about how these new rules may impact you. Or just help you find a better loan for you.