First home buyers told to consider carefully
Article by Mozo
Although the government grants offered by Rudd and the team are proving a strong incentive for first-home buyers, experts are urging them to weigh up whether to apply for a home loan carefully.
The Australian reports that with the Reserve Bank keeping interest rates pegged back at historically low levels and the June 30th deadline for grants fast approaching, the incentives to enter the market are at a peak.
However, Lisa Montgomery, head of consumer advocacy at mortgage lender Resi, said that people should be wary of making snap decisions to get themselves a low-interest home loan and enter the market.
"[First-home buyers] need to be factoring in whether they can repay that current loan at two to three per cent higher than what it is now. I would even go as far as saying three to four per cent [higher]," she told the paper.
Despite pressure to extend the deadline on the first-home buyers grant, prime minister Rudd has insisted that the original deadline will remain in place.