Sky News host Chris Smith says prospective homeowners need a “hand up, not a handout”.
Labor has announced a new shared equity initiative at the party’s campaign launch on Sunday, which would give eligible participants a commonwealth equity contribution of up to 40 per cent for the purchase of a new home, and 30 per cent for an existing one.
“A Labor government would help Australians enter the market, by taking responsibility for 40 per cent of their mortgage. It’s a shared equity scheme,” Mr Smith said.
“So, for those who can’t save enough, can’t afford the full mortgage and won’t lower their expectations, they’ll be propped up by the taxpayer.
“How can you teach a generation, that this save and sacrifice approach, is no longer required?
“It’s an extremely dangerous policy, which could also leave the government exposed to debt as well.”