Home Topics News Industry groups push to extend home buyer grant

Industry groups push to extend home buyer grant

Industry groups are urging the government to extend the first home buyer grant beyond the June 30 2009 cut-off in order to support the economy.

The grant has lured first home buyers into the market, with official statistics indicating there has been a significant boost of activity in recent months.

Mortgage Choice chief executive Paul Lahiff said that in February alone, more than 25 percent of all brokered loans were for new dwellings.

The first home buyers grant was increased from $7000 to $21,000 for newly constructed homes by the Federal Government in October of last year to boost the economy and encourage home buyers into the market, but is due to be cut back to $7000 by June 30.

Mortgage Choice senior corporate affairs manager Kristy Sheppard supports an extension to the grant.

“We definitely support any extension to that first home owners boost. There’s been a huge influx of first home buyers into the market since the first home owner boost was announced.”

The banks are also pushing for the grant to be extended, as lenders have a backlog of applications to process because demand has been so high.

Commonwealth Bank’s head of retail products Michael Cant has said that his bank’s first home buyer volumes had more than doubled since the grant was introduced in October.

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