First home buyers to win at Federal Election: RACQ

RACQ Bank has welcomed a Federal Election promise which would help first home buyers enter the housing market.

ABC News reported the plan, announced by the Coalition and matched by Labor, would see first home buyers with a five percent deposit have the Federal Government guarantee the additional amount needed to reach the 20 percent threshold.

RACQ Bank spokesperson Clare Hunter said the plan could allow Queenslanders to get into their own home sooner as it removed the obstacle of a 20 percent deposit and threat of lenders’ mortgage insurance.

“This could be a real helping hand for first home buyers who often find it difficult to save the full 20 percent deposit required by most mortgage lenders,” Ms Hunter said.

“Buyers would still have to borrow the remaining amount and take out a larger loan, but under the scheme, the Government will provide a loan guarantee to encourage banks to lend the money.”

Ms Hunter said RACQ Bank was pleased to see the plight of first home buyers had received attention in the lead up to the Federal Election.

“As property prices continue to rise the idea of buying a first home has become harder to realise for many young Queenslanders, and this plan could allow eligible applicants to start climbing the property ladder sooner” she said.

“We’re also pleased to see both sides of politics have committed to the policy, so we expect to see it implemented by whoever wins the Federal Election this weekend.”