Despite the first home owner grant boost being extended to December, there is criticism among part of the housing industry the time frame is too short.
Mortgage lender Resi Mortgage Corporation is concerned that some people would have rushed to secure a home loan thinking the grant was going to end on June30.
In yesterday's federal budget, it was announced that the boost will remain in full until September, after which the boost will be halved until the end date of December.
"However, for those still in the hunt for a home, the federal government's last-minute announcement to extend and then phase out the boost to the FHOG over the next three to six months can now offer them a fresh opportunity to take their time and plan ahead," Resi head of consumer advocacy Lisa Montgomery said.
Last year the government increased the grant to help the struggling housing market. The boost, which offers first time buyers an extra $7,000 when purchasing an established home and an extra $14,000 for new homes, was due to end on June 30.
The full boost will continue in full for homes purchased on or before September 30 this year.
It will then be halved for purchases up to December 31, 2009, and after that date the $7,000 first home owners scheme continues in its original form.
Other groups such as Mortgage Choice are supportive of the move and is hopeful the extended grant will support the housing market and boost the construction industry.
Join the discussion on First Home Owners Grant
|