First Home Buyers Grant Extended
The Australian government announced in Tuesday’s budget a six month extension to the first home owners grant boost.
Grants of $14,000 for established homes and $21,000 for new purchases will stay until September 30. From October 1 to December 31 the grant will be scaled back to $10,500 and $14,000 and return to the original amount of $7,000.
State governments have also given first home buyers a hand by either reducing the stamp duty and or adding to the grant with funds of their own. Check with your state revenue office to find out what concessions you are entitled to receive or contact us.
Rates On Hold For May
This week the Reserve Bank of Australia decided to keep rates on hold. Depending on global and local economic conditions they expect to make less frequent and smaller rate reductions.
Most lenders have not adjusted their variable rates but some are increasing their fixed rate loans for 3 to 10 years. Depending on the lender you are likely to find a 3 year fixed at 5.30% and a 5 year fixed at 6.00%
Lenders are also reducing their portfolio risk by decreasing the amount a person can borrow against a properties value. NAB and St George are the last to introduce the 90% maximum borrow amount, however, some banks lend up to 95% providing there is an established relationship with the bank for a minimum of 6 months.
100% home loans have disappeared from the mortgage market unless you can use other property as security for the loan.
If you need help and require a loan above 90% please feel free to contact us.