First Home Buyers Need to Be Aware of Changes to Grant Scheme


(PRWEB) July 16, 2013

We are currently in a climate of low interest rates. Low rates, coupled with an extension to the grant package, make it an opportune time for first home buyers to seriously consider entering the market, she says.

Fixed rates are the lowest they have been in over 30 years. First home buyers can remove all that worry of interest rates increasing by fixing their home loan for up to 5 years. It allows them to budget with certainty during the early years of home ownership.

To be eligible for the grant, first home buyers need to purchase a brand new home, to have made a comprehensive home building contract to build a new home, or to have commenced building work as an owner builder on or after 1st October 2012 or before 1st January 2016. Borrowers should be aware that lenders are most unlikely to approve a loan for an owner builder unless they have sound experience in the construction area. The grant is available for homes with a total value under $ 650,000. The grant will be reduced to $ 10,000 after January 1, 2016.

Buyers need to engage a mortgage lender with good knowledge of the grant scheme and its eligibility criteria to ensure that their best interests are being served, says Mrs. Edema.

Most lenders will have a number of products that suit first home buyers but not all will also have special loans tailored to the needs of first home buyers or the nuances involved in buying off-the-plan or home construction. For example, When youre building a home, funds will be released at certain critical milestones in the process, but only if there are enough funds remaining to complete the new home. It is critical that any construction loan is properly managed. she says.

This is good news for First Home Buyers in New South Wales, says Austral Mortgage Managing Director Vicky Edema. We are currently in a climate of low interest rates. Low rates, coupled with an extension to the grant package, make it an opportune time for first home buyers to seriously consider entering the market, she says.

This is good news for First Home Buyers in New South Wales, says Austral Mortgage Managing Director Vicky Edema. We are currently in a climate of low interest rates. Low rates, coupled with an extension to the grant package, make it an opportune time for first home buyers to seriously consider entering the market, she says.

Buyers looking at entering the market with the assistance of the governments grant scheme need to do their research and really shop around for the right lender. Obtaining a mortgage is not just about getting the best interest rate, its about getting a suitable loan package that gives you meaningful features that help you budget, save you interest and enable you to repay your home loan faster, says Vicky Edema.

Grants do not apply to First Home Buyers purchasing an existing house. These grants ceased in 2012, with the government focusing instead on grants for new houses and construction. Other States and Territories have also made similar changes to their First Home Buyer Schemes in an effort to stimulate the construction industry.

NSW Treasurer Mike Baird says the extension of the scheme in New South Wales is also about getting the States residents into affordable housing as quickly as possible, and in the long-term, working towards combating the housing shortage in the state.







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