Scrap the cap to help first home builders

Labor is calling on the Morrison Government again to use Tuesday’s Budget to scrap the cap on the number of people who can apply for the First Home Loan Deposit Scheme to build a new home.
Almost a year ago, Labor called on the Morrison Government to do this.
In last year’s Budget, the Prime Minister was dragged kicking and screaming to expand this scheme, but the Government only did this for one year.
They need to permanently increase the number of places for first home builders.
Instead of limiting it to 10,000 places for first home buyers building a new home, they should scrap this cap and offer the scheme to any first home buyer building a home and meets the income and price requirements.
The scheme, which assists first home buyers build a new home with a deposit of as little as 5 per cent, without the requirement to pay for lenders mortgage insurance, has been over-subscribed since it was introduced in 2019.
The first 10,000 places were fully subscribed in five months and most of the assistance that’s been provided to first home buyers is used to purchase existing homes.
We need to provide long-term help for first home buyers to build a new home, which will help boost the supply of housing. This is one way to do it.
If this Government was serious about helping first home buyers, they would scrap this cap.
It’s getting harder to buy, harder to rent, and there are more homeless Aussies than ever before. A responsible government would take action on all these fronts.

FRIDAY, 7 MAY 2021