As part of its work on the Greater Shepparton Affordable Housing Strategy, Council wishes to advise residents that the Australian Government launched the First Home Loan Deposit Scheme on 1 January 2020, which enables first home buyers to purchase a home with a deposit of as little as 5%.
The Scheme will guarantee up to 15% of their deposit for eligible purchasers, to avoid lenders’ mortgage insurance. Up to 10,000 guarantees will be supported per financial year, on a first-in, first-served basis.
In Greater Shepparton, the Scheme would apply to properties priced up to $375,000. Eligible borrowers can also use the Scheme in conjunction with other government programs like the First Home Super Saver Scheme, or state level grants and concessions.
Greater Shepparton City Council Mayor Councillor Seema Abdullah said the Scheme provided a valuable opportunity for singles and couple households to gain entry into the housing market, reducing the stress of trying to save a full deposit while paying rising living costs.
“Although the Strategy is yet to be finalised, Council is acting on its commitment to a multi-dimensional, incremental approach to addressing housing issues,” Cr Abdullah.
“The Scheme may only enable a small number of residents to get into their own homes sooner, but providing relief to those people, and increasing the number of properties available in Greater Shepparton’s rental market, will have flow-on benefits.”
Council appreciates the time and effort given by those who responded with feedback on the Affordable Housing Strategy during the public consultation period held from 18 October to December 2019. Council is reviewing the Strategy in response to the submissions, and expects the final Affordable Housing Strategy to be considered for adoption in the coming months.