FEDERAL BUDGET 2022: HOMEBUYING INCENTIVES EXPLAINER, COST OF LIVING BOOST FOR HOUSEHOLDS

Skyrocketing home prices and housing affordability will be a core issue come the Federal Election last this year, as such it was also a key focus of Tuesday’s Federal Budget.
This is what it means for you.

FEDERAL BUDGET 2022: HOMEBUYING INCENTIVES EXPLAINER

Price caps could hurt first-home buyers House prices surged 23 per cent over 2021, the third fastest year of growth in Australia in 140 years. That growth has made it harder for first home buyers to save a deposit.

That matters, because with interest rates at record lows, it’s saving the deposit, not servicing a mortgage, that is the constraint on homeownership for most first-time buyers.

The budget includes two measures to try and help tackle this growing deposit burden: an expanded Home Guarantee Scheme, and higher limits for the First Home Super Saver Scheme.

The Home Guarantee Scheme will help reduce the deposit burden.

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