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Mortgage Business
Family Home Guarantee price caps face scrutiny By Sarah Simpkins 07 June 2021
The Minister for Financial Services has faced some pointed questions around the new Family Home Guarantee, with a senator blasting its recently revealed pricing limits.
The Family Home Guarantee, which was introduced in the federal budget, aims to allow single parents with dependent children and who do not currently own a house to purchase one, with a deposit as small as 2 per cent.
The initiative, which will act in a similar way to other existing government guarantee schemes, will provide 10,000 guarantees over four years.
Jane Hume, Minister for Financial Services, told Senate estimates last week that the government has budgeted for 10,000 families and will re-evaluate when it sees what the demand is like.
3 ways the federal budget should have gone further: REIQ SHARE THIS ARTICLE
While it commended the federal government’s commitments for 2021, the Real Estate Institute of Queensland (REIQ) said that budgetary measures need to go further in order to have any meaningful impact on economic recovery.
The announcement of the latest federal budget revealed several moves from the government to support property, including assistance for single parents, first home buyers, new home builders, retirees and downsizers, renovators and beneficiaries of public housing.
The REIQ has welcomed these commitments as Queensland continues to rise as a high-performing property market, with prices rising at the fastest monthly rate in over 30 years and interstate migration adding unprecedented pressure on housing stock.
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