The Coalition will raise the price caps for houses eligible under its controversial Home Guarantee Scheme to help home buyers get into the property market faster as the soaring cost of housing plays a key role in the federal election.

Buyers with a deposit as low as five per cent can apply to the scheme, in which the government guarantees up to 15 per cent of the mortgage so buyers don’t need costly lenders’ mortgage insurance.

Prime Minister Scott Morrison will raise the price caps on the Home Guarantee Scheme.CREDIT:JAMES BRICKWOOD

Prime Minister Scott Morrison said on Sunday night the price caps on the popular scheme had been raised to $800,000 for Melbourne and regional Victoria and $900,000 in Sydney and regional NSW.

“We’re building a stronger future for Australians by making home ownership easier by making more properties eligible for the scheme,” Morrison said.

The number of places in the scheme was doubled to 50,000 a year in the federal budget in March at a cost of $8.6 million, prompting economists to warn it would drive up the cost of housing.

Source: https://www.smh.com.au/politics/federal/coalition-targets-first-home-buyers-by-upping-mortgage-guarantee-scheme-20220417-p5ae0p.html