Australian Coat of Arms

Member for Blaxland

Shadow Minister for Regional Services, Territories and Local Government

Shadow Minister for Housing and Homelessness 

Treasurer and Minister Sukkar must rule out higher interest rates under First Home Loan Deposit Scheme

TREASURER AND MINISTER SUKKAR MUST RULE OUT HIGHER INTEREST RATES UNDER FIRST HOME LOAN DEPOSIT SCHEME

 

Reports in today’s Financial Review that buyers might have to pay more under the First Home Loan Deposit Scheme shows the Morrison Government could be set to break its only election promise to help first home buyers.
 
The Morrison Government needs to rule out the possibility of first home buyers having to pay higher interest rates or being worse off under the scheme.
 
If the banks are able to charge higher interest rates it will defeat the entire purpose of the scheme.
 
The Government also needs to give an iron-clad commitment that the scheme will be fully up and running in line with their election promise of 1 January 2020.
 
Reports that the Government is in a “mad scramble” with a “lot of concerns about meeting the due date” suggest the Treasurer and  Minister Sukkar are facing serious challenges in implementing the scheme which even they have described as “first-in best dressed”.
 
With eight weeks to go, first home buyers still don’t know:

  • If the scheme will be up and running;
  • If they will be charged a higher interest rate;
  • What banks are participating;
  • If those banks will charge them a fee to apply;
  • If they will be able to be one of the 10,000 to secure a guarantee, and
  • If a rush of approvals will lead to short-term pressure on house prices – putting a home out of reach for those that miss out.

 
The Government needs to come clean and provide assurance to those Australians considering applying for the deposit guarantee that they won’t be worse off.
 
MONDAY, 11 NOVEMBER 2019