The Property Council is calling for government support to cap interest rates for Australians building their first new home.

In the lead up to the Federal Election, it is calling for a First Home Buyer Accelerator Loan Scheme to be introduced. The scheme would limit deposits for first-time buyers of new homes or apartments to 5% and ensure banks charge a capped interest rate. The rate would be capped at either the official RBA cash rate or 5%, whichever is greater, for a period of five years.

Property Council Chief Executive Mike Zorbas says it’s a realistic way that the Government can help first-time buyers.  “Helping more Australians into homes should be everyone’s highest priority this coming election,” he says. “Our proposal will help first-home buyers save up to $1087 every month and $13,044 annually.” Zorbas says it requires no upfront spending from the government and if the proper checks and balances are put in place, the risk to government is minimal.

The Property Council is also calling for “pro-investment policy initiatives” to address Australia’s housing crisis and boost investment and it says initiatives encouraging more investment into purpose-built student accommodation could also go a long way toward reducing pressure on the broader rental market.