Budget allows for grant extension

The boost to the First Home Owners Grant has been extended in the Federal Budget, announced last night, after recent speculation it would end as originally planned on June 30.

The boost will continue in its current form at the full $14,000 for eligible first home buyers for the purchase of existing properties and $21,000 for newly constructed properties until September 30.

Between October 1 and December 31, the boost will be halved as part of a phase-out period, with grants during this time of $10,500 available to purchase existing properties and $14,000 for newly constructed properties.

The extension is likely to boost the number of first home buyers entering the market in the second half of 2009 than would otherwise have been likely if the grant had been wrapped up as planned on June 30, by allowing potential buyers more time to find property and obtain the necessary home loan approvals.

A continuation of the highly successful first home buyer seminars that have been held across the country by Ray White and Loan Market over the past six months will provide the opportunity to properly educate first home buyers on what they need to do to take advantage of the extended boost to the grant. Talk to your local Loan Market mortgage broker if you are yet to hold a seminar in your area.

This is particularly important with meeting changing lending criteria, and how the boosted grant may be used in conjunction with genuine savings to most effectively secure the right financeoption.

The assistance of a Loan Market mortgage broker may be able to help borrowers overcome any barriers they encounter in the finance process, ensuring sales continue to proceed despite the tougher financial conditions.