Stamp duty rules impact home loan uptake

Tuesday 15 May 2012

Article by Mozo

The introduction of stamp duty payments appears to have had a negative impact on home loan uptake in New South Wales (NSW).

According to new figures released by the Australian Bureau of Statistics (ABS), the number of first-time buyers entering the market throughout the state fell by nearly 50 per cent in the first three months of the year, the Daily Telegraph reports.

Under the terms laid out by treasurer Mike Baird last year, first home buyers purchasing existing properties have to pay transfer title charges on buildings worth less than $600,000.

Although Mr Baird denies that this has been the direct cause of the subdued demand in NSW, the correlation seems to be too much of a coincidence.

However, further research by the ABS has indicated that the overall number of people securing a mortgage grew marginally (by 0.3 per cent) across Australia in March 2012.

"While recent cuts to interest rates should provide some relief and support to the housing market, the NSW government has acknowledged that housing supply remains a key challenge across the state," Mr Baird was quoted as saying.

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Stamp duty rules impact home loan uptake

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