The second allocation of places under the government’s First Home Loan Deposit Scheme will become available on Wednesday and first home buyers are being advised to get their applications in fast.
The National Housing Finance and Investment Corporation allocated 10,000 places in the 2019/20 financial year, which were all taken up by the end of May.
It is allocating another 10,000 places in the new financial year.
Under the scheme, eligible first home buyers can purchase a home with a deposit of as little as 5 per cent. NHFIC guarantees to a participating lender up to 15 per cent of the value of the property purchased.
Banks have agreed not to take out lenders mortgage insurance on the loans.
There are 27 lenders participating in the scheme, including Commonwealth Bank and NAB.
Labor housing spokesman Jason Clare has called on the government to increase the allocation, saying there should be no cap for buyers of newly constructed dwelling.
Clare said: “We need to provide more support for the construction of new housing to help keep tradies working and off the dole queue.”