First home loan deposit scheme see first-time buyers into property market sooner in the Redlands

NEW HOME: First homeowners Craig Malone and Sarah Koch in their new Fiteni home in Redland Bay.
NEW HOME: First homeowners Craig Malone and Sarah Koch in their new Fiteni home in Redland Bay.

AROUND 100 first-time buyers in the Redlands are in their dream home despite the economic crisis brought on by the COVID-19 pandemic.

This comes after the government's first home loan deposit scheme kicked off earlier this year.

Prime Minister Scott Morrison announced the scheme, that enabled first timers to get into the market sooner with as little as a 5 per cent deposit, on Mothers' Day last year.

The scheme started this year and was available to 10,000 Australians earning up to $125,000 or couples earning up to $200,000.

Bowman MP Andrew Laming said he pitched the idea to cabinet in August 2018 and urged young buyers to 'run the math' on the new programs and see if it worked for them.

"We knew there would be a stampede for deposit assistance, but ironically the demand easing due to COVID means this scheme will deliver 10,000 deposit guarantees as planned," he said.

With 200 approvals weekly across the nation, this had been a lifeline for the building and construction industry.

"There needs to be more stimulus like this from state government and cooperation from council to ensure we activate the construction economy with new home sales at a historic low," said Vaughn Bowden from Fiteni Homes.

Mr Laming said as one of the architects of the first home loan deposit scheme, he always dreamed applicants confident in their finances could get out of the rent trap and into their homes sooner.

"For so many local young home buyers with stable jobs, their biggest hurdle was saving for the deposit, rather than servicing a loan. It makes no sense to hold them in rentals for no decent reason.

'Every person into their own home leaves a roof to someone desperate for affordable rental options," he said.

New home owner Craig Malone said he had been trying desperately to save for a deposit on a home.

"The mortgage broker helped us get the application done and now we are living in our own home in Redland Bay," he said.

First home buyers who missed out will get a second chance to apply for the scheme when it reopens from July 1 for a further 10,000 guarantees.

While this plan was welcomed by new property buyers, there is also a Queensland first home owners' grant to help first timers get their new home sooner.

Buyers can get $15,000 towards buying or building their new house, unit or townhouse (valued at less than $750,000).