Loan Market Group Executive Director John Kolenda said the decision to extend the expanded grant scheme would provide some certainty for first time buyers, the residential real estate sector and the housing industry.
Mr Kolenda said doubling the First Home Buyers Grant to $14,000 for established homes and $21,000 for newly built properties last October had helped underpin the residential property market during the global economic crisis.
“The real estate market was at risk of a downturn if the boosted grant was allowed to expire as scheduled on June 30,” he said.
“The boosted grant was one of the most successful of the Federal Government stimulus packages and it’s welcome news that the Government has heeded persistent calls from Loan Market Group and other organisations to extend the scheme.
“It shows that they are carefully considering the state of the property market.”