An election pledge to make it easier for first home buyers to enter the market has reached federal parliament.
Up to 10,000 first home buyers each year will only have to save five per cent of a deposit under the plan, with the federal government guaranteeing the difference between that and a standard down-payment of 20 per cent.
Housing Minister Michael Sukkar on Thursday introduced draft laws to set up the scheme, acknowledging it had become much harder for Australians to enter the housing market.
The First Home Loan Deposit Scheme will be available to 10,000 first home buyers each year.
— Michael Sukkar (@MichaelSukkarMP) September 12, 2019
The government will guarantee deposits through the National Housing Finance and Investment Corporation, which has begun consulting with lenders about taking part in the scheme.
The consultation process will eventually lead to a panel of lenders.
NHFIC has called for all residential mortgage lenders wanting to make a submission to do so by October 3.
If passed, the first home buyers deposit scheme will begin on January 1 next year.
© AAP 2019