A new initiative aims to help first homebuyers save thousands and speed up their path to homeownership. The Property Council of Australia has proposed the First Home Buyer Accelerator Loan Scheme, which would:

• Lower deposit requirements for new homes to just 5%, cutting down the time it takes to save for a deposit.
• Cap interest rates on loans to a maximum of the Reserve Bank's cash rate or 5%, whichever is higher, helping buyers save up to $13,044 annually.
• Have the government guarantee 15% of the loan, allowing banks to offer lower deposit loans.

The scheme aims to make it cheaper and quicker for young Australians to buy their first home while boosting housing supply. It would not require upfront government spending and would focus on driving new home construction.

Master Builders Australia’s Denita Wawn emphasised that improving productivity in the construction industry is crucial to solving the housing crisis, pointing out regulatory and workforce issues as significant barriers.

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