New home buyers in Australia are going to take a hit after the First Home Owner Grant will be scrapped after June. Under the terms of the grant, people buying a home for the first time are given $7,000. It makes a huge difference to the range of homes available to buyers. With the additional $7,000, they can afford to increase their budget from its original level. In addition, the related First Home Builder Boost is also going to expire by the end of the year.
The First Home Builder Boost is exclusively for buyers who plan to build a home or are buying a new home. The Boost provides them up to $23,000. This amount is in addition to the $7,000 they receive from the First Home Owner Grant. This means that any home buyer who wants to buy a new home may receive up to $30,000. Needless to say, it could make a huge difference to the type of house they can buy.
First Home Owner Grant Changed
The scrapping of the First Home Owner Grant is the more devastating of the two changes made to the loans available to home buyers. Buyers were able to easily cover the associated costs of buying a home, such as the legal fees and also the stamp duty, with the $7,000 they received. Now, they will have to spend the time to save up this amount before they can think about buying a home. It could take an additional year or two for a buyer to save $7,000.
The First Home Owner Grant was available to any new home buyer regardless of whether the home he/she is purchasing is newly built or is several decades old. As long as the buyer is new, the grant was awarded. This is going to make it more difficult for new buyers to enter the market. It could have a potentially damaging outcome on the demand for homes in Australia, particularly new homes. Already the share of new buyers has been declining in some states.
With rising land tax in Australia and mounting prices, the sources of finance available to people who want to buy their homes are limited. One solution still available for home buyers is using a bank alternative like NSW Mortgage Corp. Offering a wide range of home loan products that are tailored made to your situation, NSW Mortgage Corp could help you with your mortgage finance.
Contact NSW Mortgage Corp today for a free no credit check home loan consultation and find out your options.