Morrison Pledges To Increase Price Cap To Help First-Home Buyers Enter Market

Prime Minister Scott Morrison has pledged to increase the first home buyers cap to allow buyers to purchase more expensive homes with a smaller deposit.

The pledge comes as the housing market continues soar to unaffordable prices.

Under the federal government’s guarantee scheme, first time buyers will be able to purchase more expensive homes with a five percent deposit in a bid to keep up with riding housing prices.

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As of July 1, price caps are set to rise nationwide for new and pre-existing homes which will see the cap on Melbourne homes rise from $700,000 to $800,000 and $800,000 to $900,000 in Sydney.

Brisbane, Adelaide and Perth will see a price cap increase of $100,000

Under the new scheme, there will be 50,000 places available which will include 35,000 for first-time home buyers, 10,000 for people wanting to build homes in regional areas and 5,000 for single parents who will be eligible for a deposit of only two percent.

According to Prime Minister Scott Morrison, raising the cap will see more Australians entering the housing market.

“Saving to buy a house has always been hard work and we know as prices have increased it’s been getting harder,” he said.

“That’s why these higher price caps will help more people realise their dreams and lock in a stronger future for themselves.”

While increasing the cap will make it easier for Australians to buy homes, it will also mean taking on more debt.

Housing Minister Michael Sukkar said the new price caps “strike the right balance”.

“We are confident these adjusted price caps strike the right balance,” he said.

“By adjusting the price caps for the home guarantee scheme, we are ensuring Australians have more options when buying a home.”

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