Single parents with dependent children will be able to purchase a home with a deposit of two percent.
It will be under the Family Home Guarantee, which the government will establish to provide 10,000 guarantees from July 1, 2021, to single parents over the next four years.
The New Home Guarantee will also be extended for one more year and open 10,000 places for eligible first home buyers from July 1, 2021. This is in addition to the 10,000 spots currently under the scheme.
First home buyers will also be able to release up to $50,000 in voluntary contributions from their superannuation. This is increased from $30,000.
The National Australia Bank (NAB) welcomed the announcement and said they were excited about the new initiative for single parents.
Slade said their bank had helped 5,500 Australians over the last 18 months buy their first home through the scheme, during which first homebuyers had entered the market at levels not seen for a decade.
Property Council of Australia also welcomed the announcement, with Property Council Chief Executive Ken Morrison saying it would help the residential housing sector continue to drive the Australian economy.
“As stimulus and support measures wind down, the industry will be looking for policymakers to adopt measures which restore the traditional drivers of growth in the housing market, including a return to net overseas migration as quickly as possible.”
However, housing experts are saying the scheme will not help the current housing supply issue and will simply raise the already record-breaking prices.
The government will also provide states and territories with an additional $124.7 million to help boost their public housing supply.