Broker News - Strong support to extend boosted FHOG

Australians strongly support the federal government extending the boosted First Home Owners Grant beyond its June 30 deadline, a national survey has found. An online poll conducted by independent mortgage broker, Loan Market Group, found 91% of respondents believed the increased grant should be extended.

Executive director at Loan Market Group, John Kolenda, said these results backed calls to continue the grant due to the positive impact it has had on the residential market. Furthermore, Kolenda said that while government's initiative to increase the FHOG last year had provided 'a solid foundation for the property market during the crisis,' he felt that ending it on June 30 would jeopardise the markets' complete recovery.

"We are urging the government to extend the boost to the grant for another six months and our survey shows strong public support for that stand," he said. He also dismissed claims that the increased grant had inflated property prices - or that it had rendered first-time borrowers vulnerable to bankruptcy. Rather, Kolenda found that the grant had provided stability to the residential market.

"There are many consumers and small medium enterprises finding it more difficult to get credit now than they otherwise would have historically, indicating that our banks are well on top of managing borrower risk," said Kolenda. The survey found 39% of respondents intended to enter the market, 28% had home loan pre-approval, 24% felt the boosted grant had been good for the market and only 9% were against extending it.

Broker News - Strong support to extend boosted FHOG

First Home Loan Specialists Comment

It looks like the push is on to extend the First Home Owners Grant boost beyond the 30 June 2009 cut-off date. However, the economic pressure of the funds already comitted in the two financial packages may mean that the Government may have to slash spending somewhere. I am expecting a tough budget in May. So there is no guarantee that the Government will extend the boost.

Greg Brierley
Principal
T: 1300 880 809
F: 02 6241 2545
E: Greg@firsthomespecialist.com.au
W: www.firsthomeloanspecialist.com.au

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