Potential first homebuyers who want to take up the First Home Owner Boost offer and have their home loan approved before signing a property purchase contract should be very aware that they may have only four weeks to get property finance plans underway.

Why? Lender’s loan processing issues have been exacerbated in recent months, pushing approval turnaround times to anywhere from one day to up to six weeks.

Mortgage Choice senior corporate affairs manager, Kristy Sheppard said, “While processing times will vary between lenders, the next four weeks are crucial for buyers who wish to have their home loan approved before signing a property purchase contract and applying for the grant boost.”

“Savvy borrowers wanting such peace of mind and confidence should do their best to have applied for finance by mid November, at least six weeks prior to the First Home Owner Grant boost deadline, to allow adequate time for loan processing and grant application.

“Our mortgage brokers are explaining to these safety-conscious first homeowners that not only do they need to have applied for finance well before the end of December, they also need to meet stricter lending criteria. The majority of lenders require at least five percent of the purchase price to be built from genuine savings accumulated over at least three months - excluding any state or federal government grants.

“Reputable mortgage brokers can help borrowers determine the requisite borrowing level for their desired property, how much they will be allowed to borrow, provide an estimate for loan repayment amounts and assist them through the property purchase process.

“When dealing with a rush to the finish line and heated competition from other mortgage applicants and property buyers, well thought-out decisions are vital. In our experience, consumer awareness and education about the mortgage industry is paramount to help borrowers achieve their goals.

“Property buyers must remember that while handouts and concessions are tempting, they are not the be-all and end-all. Many first time buyers have made the move to property ownership since the Boost was announced in October 2008, however there are a great number who will miss out - for good reason.

“Deciding what to buy, where to buy, how much to spend and contending with lenders stricter finance criteria are only half the battle. Making the decision of when to buy is just as important.

“As mortgage interest rates are expected to return to more ‘neutral’ levels of between seven to eight percent, first time buyers need to put the First Home Owner Boost aside and research their true limits - financially and emotionally - before taking on what is often the largest financial commitment many Australians will make.

“For those wanting to meet the deadline, the key to achieving a property purchase you are satisfied with is to be prepared - research your options, borrow within your means and stick to your limits.”