00:00This year, the average price of a house in Australia passed the million-dollar mark.
00:07So the Federal Government decided to change its home guarantee scheme, hiking price caps.
00:13Anyone can now qualify, no matter what they earn, they just need a 5% deposit
00:18and the Government will go guarantor for 15%, skipping the need for lenders, mortgage, insurance.
00:25Well, some people will get into homes sooner than they might otherwise have been able to.
00:31For those who aren't able to arrange their affairs to take this scheme up,
00:34the result will be that it becomes even harder for them.
00:38The ABC asked Australia's financial comparison site CanStar to crunch the numbers
00:44with borrowings at an interest rate of 5.5%.
00:48And they're a bit scary.
00:49CanStar found buying a property at the new price ceiling out of reach for single-income earners in every major city.
00:57Look at Sydney, for example.
00:59The borrower would need to earn more than $260,000 a year to afford the loan,
01:04with repayments of around $2,000 a week.
01:08For Brisbane, the income needs to hit the $170,000 mark, bringing repayments to nearly $1,400 a week.
01:16And for Melbourne, a single earner wages needs to be around $160,000, repayments $1,200 a week.
01:25For many people, it is just not affordable.
01:28Unfortunately, they have to start with a much lower priced property.
01:33For couples, CanStar found they would also be priced out of Sydney or Melbourne
01:38at the maximum limits due to low wages.
01:41However, they could afford to buy in all other major cities.
01:44But it is a one-off sugar hit because property prices are likely to rise
01:49on the back of the uncapping of this scheme.
01:51It's a case of do your sums and don't over commit.
01:54I'll see you next time.
01:55Bye.
01:56Bye.
01:57Bye.
01:58Bye.
01:59Bye.
02:00Bye.
02:01Bye.
02:02Bye.
02:03Bye.
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