Around 3,000 eligible home buyers across NSW will soon be able to take part in the Australian Government’s Help to Buy housing program each year, after the NSW Parliament passed enabling legislation.
Help to Buy will assist eligible low to middle income earners to purchase a home with a contribution from the Australian Government of up to 40% of the purchase price for new homes and 30% for existing homes.
The NSW Government says Help to Buy will help to bring the dream of owning a home within reach for thousands of people earning an annual income of $100,000 or less for individuals, or up to $160,000 for couples and single parents.
“We want to give more people more pathways to get into their own home and this program will help thousands in NSW do just that,” Treasurer, Daniel Mookhey said.
“Help to Buy can take years off the time it takes to save for a deposit and that’s meaningful relief for families.
“Around a third of the 10,000 places available every year will be right here in NSW.”
Eligible participants will be able to purchase property for up to $1.3 million in Sydney and regional centres and up to $800,000 in the remainder of the state, with a requirement that the home is the principal place of residence.
Ten thousand places a year will be allocated across the country, with about one-third available to buyers in NSW. The program can shrink the deposit required to buy a home to a minimum of 2% and avoids the cost of Lenders Mortgage Insurance.
It will be funded by the Australian Government and administered by Housing Australia and is expected to commence later in 2025.
“Help to Buy is about fairness. It’s about making the dream of owning a home achievable again for thousands of people who’ve been let down by a broken housing system,” said Minister for Housing and Homelessness, Rose Jackson.
“Home ownership has felt completely out of reach for working people. Help to Buy will make it possible for people to own a home of their own, with a smaller deposit and no mortgage insurance.
“Alongside the biggest planning reforms in a generation, our landmark Transport Oriented Development (TOD) program – which delivers more housing near train stations and public transport – and the $6.6 billion Building Homes for NSW program, Help to Buy is one more way we’re building a better NSW where everyone has a fair shot at secure, affordable housing,” she said.
