THE Northern Territory Government last week said launched two new housing initiatives that aim to get more families into their own homes and ease rental pressure while stimulating housing supply.
Treasurer, Delia Lawrie, said with bank lending practices limiting housing developments, the government is stepping in to help stimulate supply, support people purchase their own home and help free up rental stock.
"The Territory Government understands the challenges of our strong economy for workers and families trying to break into the property market while paying high rents," Ms Lawrie said.
"The scheme will act as stimulus to housing supply by bringing forward land release and unit developments as it provides the finance for pre-sales where the banking sector has tightened credit."
The two new programs are:
My New Home
My New Home aims to remove two of the crucial barriers to home ownership: deposit and lender insurance.
In conjunction with TIO, the My New Home package provides deposit free loans for new housing of up to $750,000 with no lenders mortgage insurance.
"This product means more Territorians are now eligible to purchase their own home if they meet commercial lending criteria," Ms Lawrie said.
Homestart Extra delivers more affordable housing options for more Territorians, by increasing the shared equity option from 30 per cent or $75,000 to 50 per cent or $200,000, as well as increasing fee assistance loans to $15,000 meaning little or no deposit.
"By significantly increasing the equity options for Homestart, the Henderson Government is backing Territorians on low and middle incomes who want to get off the rental roundabout," Ms Lawrie said.
"The Territory has the best housing assistance package in the nation and alongside our record land release these new incentives give working Territorians the ability to escape the rental roundabout."