Housing
Background
The member referenced a previous statement by the Minister regarding the risk of first home buyers falling into negative equity due to low interest rates and large mortgages.
Question
The member asked how many first home buyers had entered negative equity since the budget was delivered, citing the Minister's earlier concerns about this specific risk.
Answer from Clare O'Neil
The Minister stated that legislation passed the previous week delivered tax cuts for 13 million workers and created a level playing field for first home buyers, aiming to help 75,000 renters purchase homes. She noted that Treasury modelling predicted house prices would continue to grow but at a slower rate, approximately two percentage points less than otherwise, a figure supported by the Commonwealth Bank and the Grattan Institute. The Minister emphasized government support for first home buyers through the five per cent deposit program, Help to Buy, and the new tax reforms.
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