New fund rollout for low cost homes

The federal government will provide $315 million worth of low-interest loans to fund more than 1600 community housing properties across Australia.

The new funding round for 2000 homes would also include 360 new social and affordable housing properties.

The latest round of funds from the National Housing Finance and Investment Corporation will go to projects in every state except Tasmania and the two territories.

The corporation estimates these low interest bonds will save providers around $50 million in interest payments over the decade.

The bonds will be set at a fixed rate of 2.07 per cent for 10.5 year, interest-only loans.