First home buyers can borrow as much as $300,000 with no deposit of their own thanks to a range of Federal and State Government concessions, according to Australia’s largest independent mortgage broker
Jennifer Nielsen, Chief Executive of Loan Market Group, said doubling the First Home Buyers’ Grant to $14,000 and providing $21,000 for those purchasing newly constructed homes had significantly boosted the borrowing opportunity of first home buyers.
Ms Nielsen said cuts in stamp duty in some States and territories had also increased the spending capacity of the first home buyer.
“Using a combination of the federal grant of $14,000, and State grants of as much as $3,000, a first home buyer would obtain a 95 per cent loan and still have $2,000 left over to pay for transfer registration, mortgage registration, conveyancing, mortgage insurance and bank fees,” she said.
Ms Nielsen said falling house prices and interest rates also meant broader conditions were a lot more favourable for those wanting to enter the property market.
“Prospective first home buyers should also consider opening a First Home Savers Account,” she said.
“This has been available since October 1 this year and offers tax incentives and government co-contributions of 17 per cent on deposit amounts.”
Ms Nielsen the amount first home buyers could borrow would be determined by how much income they earned and how much they already owed on credit cards.
She said direct inquiries from first home buyers to Loan Market brokers had risen dramatically since big cuts in home mortgage rates and the increase in the First Home Buyers’ Grant.
“Our call centres report that 80 per cent of our incoming leads are from first home buyers,” she said.
“First home buyers are out there on the front line for the first time in many years.
“These people had also been stung by major increases in rents and they can now take advantage of better conditions and government incentives to escape the rental trap and buy their own home.”