First home loans customers 'rushing for grants'

Monday 28 September 2009

Article by Mozo

Experts in the property sector have suggested that there will be a rush for among potential home loans customers as the first home grant is due to be cut.

The government is set to reduce the grant from $14,500 to $10,500 on existing homes and from $21,000 to $14,000 at the end of September 2009, before dropping to $7,000 next year.

According to the Australian, there is likely to be an "11th hour frenzy" among mortgage customers – including those looking for low interest home loans – before the grant is cut.

It cited Australian Property Monitors, which indicated that agents in Sydney have listed 690 properties for auction, up from 437 the weekend before.

Richard Van Proctor, acting president of the Investors Club, commented: "People have taken advantage of the first-home buyers grant and rushed in to buy properties because they got the deduction on stamp duty and they got the government subsidy."

This comes after the a survey by the National Australia Bank found that only three-quarters of respondents were aware of the reduction in the Government First Home Owners Boost at the end of the month.

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