First home loans customers 'not aware of reduction to FHOB'

Wednesday 23 September 2009

Article by Mozo

The majority of potential home loans customers who expect to get a Government First Home Owner Grant (GFHOG) are unaware that the First Home Owner Boost (FHOB) will be reduced.

According to the National Australia Bank First Home Buyers survey, only three-quarters were aware that the FHOB is to be cut on September 20th 2009.

About half of potential low interest home loans customers eligible for a GFHOG said the FHOB was one of the factors contributing to their decision to purchase a property.

Steven Shaw, general manager of mortgages at NAB Personal Banking, commented: "Our research has uncovered a level of uncertainty amongst many potential first home buyers about what amount of support is available and what type of loan would be best suited to them."

He said this is despite the fact that government aid has enabled more and more first home buyers to enter the market.

The survey also found that two-thirds of those taking out home loans today are likely to opt for one that is variable or split over a fixed rate one.

Earlier this month, Bernie Lewis home loans executive chairman Mark Lewis said close to 30 per cent of lending for property is going to first home buyers.

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