Government saver scheme not attracting first-time buyers

A significant proportion of Australians have never heard of the federal government's First Home Saver Accounts (FHSA) scheme, new research shows.

The scheme, which was launched two years ago with the aim of helping young people save up for a deposit on a property, requires members to keep their funds in an FHSA for four years.

Under the initiative, the government contributes 17 per cent on the first $5,500 of individual contributions made every year.

However, while it was hoped that the scheme would help huge swathes of prospective property buyers into the market, an online poll by mortgage broker Loan Market has found that 46 per cent of respondents are not aware of FHSA.

The finding suggests many first-time home buyers are looking elsewhere when they come to compare savings accounts for their deposits. Loan Market chief operating officer Dean Rushton commented: "Despite the 2010 budget announcement by the federal government of draft laws to boost the flexibility of the scheme, it clear from our survey results that prospective home-buyers are unaware of the FHSA or still find it too complicated."

This article is brought to you by Mozo – Helping you compare savings accounts