The federal Labor party has committed to introducing a new regional first homebuyer support program that would help Geelong residents if it wins this year’s election.
Opposition leader Anthony Albanese and shadow housing minister Jason Clare announced it would introduce the Regional First Home Buyer Support Scheme if elected.
The scheme would help an extra 10,000 regional families annually by allowing homebuyers to avoid paying for lenders mortgage insurance with a five per cent deposit.
The government would guarantee the remaining 15 per cent of the deposit.
The scheme is the same as the federal government’s existing First Home Loan Deposit Scheme, but would be targeted solely at regional Australians.
Mr Albanese said Geelong would be one of the regions targeted.
Geelong first homebuyers would be able to access the scheme when buying a property up to $70,000, which would save up to $27,946 on insurance.
“We want to help people to get into home ownership,” Mr Albanese said.
“It shouldn’t be the impossible dream, which is what it’s fast becoming at the moment.”
Mr Clare said there was a need for specific support in the regions, which have seen significant increases in property prices.
Data from the Real Estate Institute of Victoria revealed the City of Greater Geelong’s media house price rose by almost one-quarter (23.9 per cent) in 2021, to $765,000.
“Prices have skyrocketed over the last couple of years, but they have jumped in regional Australia more than they have in the capital cities,” Mr Clare said.
Mr Albanese said the scheme would provide triple the support provided to regional Australia under the existing scheme, which is open to metropolitan first homebuyers as well.
Labor’s scheme would be reserved for residents who had lived in their region for more than 12 months and price caps would reviewed every six months.
On Monday treasurer Josh Frydenberg announced the federal government would extend its homebuyer scheme to 50,000 guarantees each year.
Its first homebuyer scheme will expand from 10,000 to 35,000 guarantees from July, with Geelong residents able to access it on properties up to $700,000.
It also matched Labor’s regional guarantee, although it is open to anyone who hasn’t owned a property for the past five years.
It will also continue its program for single parents looking to buy their first property, with 5000 guarantees available per year.
