MFAA urges Government to extend first time buyer grant.
The peak body for the mortgage and finance industry has urged the Government to extend the First Home Owners Boost beyond June, saying that the added incentive was attracting additional first time buyers to the market, buoying the housing sector.
Phil Naylor, CEO of the Mortgage and Finance Association of Australia (MFAA) said: “First time buyers are an incredibly important element of the housing industry and any comeback in the housing industry is reliant on new entrants and people purchasing their first home.
“We have written to Tanya Plibersek in her capacity as Minister for Housing, and have requested that the Government give serious consideration to extending the boosted First Home Owners Grant beyond June,” said Mr Naylor.
“There is a wealth of evidence showing that it is a highly successful program and is attracting new entrants into the market now, who may otherwise have to delay their purchase while they continue to save.
“Members of the MFAA have reported that there has been a significant upswing in the number of home loan applications from first time buyers since the Grant was boosted in October last year. In fact, a recent member survey found that over 60 per cent said there had been more interest from first timers seeking a loan,” said Mr Naylor.
“This is feedback from the front line and it is supported by ABS statistics. Figures released in February show that first home owner loans made up 25.4 per cent of all loans in December compared with 17-18 per cent before the Grant was increased. This means that the proportion of first time buyers is at its highest level since 2001.
“Our own research conducted at the end of 2008, also reflected the significant impact on confidence that Government initiatives are having,” said Mr Naylor.
“38 per cent of first time buyers said that the Government was doing enough to support them in their quest for home ownership and this is a massive increase from April 2008, when only 13.9 per cent of respondents thought the Government was doing enough.
“We recognise that the Boosted First Home Owners Grant is not a long term solution. However, we need to work hard to secure a healthy and vibrant housing market to contribute to an economic revival. The current state of the economy should give good cause to the Government extending the Boosted Grant for a further period.”
From MFAA Website
