Changes to the First Home Owners Grant Scheme Boost and Government Fees

The Federal Government has extended the First Home Owners Grant Scheme Boost for six months from 1 July 2009 to 31 December 2009.

The Federal Government’s First Home Owners Grant of $7,000 will continue.

For established homes, customers must enter into the contract no later than 30 September 2009 to receive the $7,000; customers entering into a contract from 1 October 2009 – 31 December will receive a $3,500 boost payment

For new homes, customers must enter into the contract no later than 30 September 2009 to receive the $14,000 and customers entering into a contract from 1 October 2009 – 31 December will receive a $7,000 boost payment.

There are three eligible transactions under the new home scenario: For construction loans where a building contract has been signed building must commence within 26 weeks and the construction must be completed within 18 months.

For off the plan purchases the contract must be signed on or before 30 September 2009 to receive the $14,000 and on or before 31 December 2009 to receive the $7,000. Construction work must be completed on or before 31 March 2011.

Victoria: Changes to the Victorian Home Bonus From 1 July 2009 – 30 June 2010 the Victorian Government funded Home Bonus will reduce from $3,000 to $2,000 for existing homes and will increase from $5,000 to $11,000 for new homes.

Eligible transactions will increase from $500,000 to $600,000.

Changes to the Victorian Regional Home Bonus From 1 July 2009 – 30 June 2010 the Victorian Government funded Regional Home Bonus will increase from $3,000 to $4,500 for eligible customers. 

  Government Fees

VICTORIA

VIC Mortgage Registration fee changes Effective 1 July 2009,

Victorian registration fees will increase:

Registration of Mortgage fee will be $98.00 (previously $95.10)

Registration of Discharge of Mortgage will be $98.00 (previously $95.10)

Registration of Transfer of Mortgage will be $119.40 (previously $115.90) plus $2.46 for every $1,000 of the transaction. The maximum fee is $1,350.

NEW SOUTH WALES

Changes to NSW FHOG Benefits application processing As from 25 May 2009, the NSW OSR requires a minimum of one day before funds are available following submission of the FHOG application.

This is to allow time for ownership checks to be conducted.

In most instances previously, funds were available on the day of submission (although the OSR has never guaranteed funds within 48 hours). 

 NSW Mortgage Registration fee changes Effective 1 July 2009, NSW registration fees will increase:

Registration of Mortgage fee will be $95.00 (previously $92.10)

Registration of Discharge of Mortgage will be $95.00 (previously $92.10)

Registration of Transfer of Mortgage will be $190.00 (previously $184.00).

WESTERN AUSTRALIA

WA Registration fee changes Effective 1 July 2009, these WA registration fees will increase:

Registration of Mortgage fee will be $110.00 (previously $105.00)

Registration of Discharge of Mortgage will be $110.00 (previously $105.00)

Registration of Transfer of Mortgage will be $110.00 (previously $105.00), plus $20 for every $1000 or part thereof over $85,000.

SOUTH AUSTRALIA

Abolition of Mortgage Stamp Duty in South Australia Effective 1 July 2009 mortgage stamp duty in South Australia will no longer exist.

First Home Buyers and Investors Drive Borrowing Surge and Keep the Economy Moving…

Australian Bureau of Statistics’ latest data reveals a continued increase in housing finance activity, driven by first home buyers and investors.

The total value of dwelling commitments rose by 3.6% in April to $21.547 billion, seasonally adjusted, to be up by 10.7% on the same month last year.

Investor finance rose by 8.9% over the month to $5.497 billion, seasonally adjusted, with First Home Buyers also continuing to rise, to 28% of all owner occupied loan applications.

Concerns in some areas about a property bubble developing at the lower end of the market with houses priced under $400,000 continue, however this month’s figures showed the average first home buyer loan size fell by $2,500 to $283,400.

This first home buyer loan size is $50,000 more than that recorded at the same time last year.

The Federal Government’s First Home Owners Grant Scheme will continue this wave of buying until it is cut back on 1^st October 2009,

2009 Federal Budget Good News For First Home Buyers

Ending speculation, the mortgage industry has been buoyed by the news last night (May 12^th) that an extension of the increased first home owner grant was included in the federal budget.

The increased grant will continue until September 30, after which it will be phased down to $14,000 for new homes and $10,500 for existing homes until the end of the year.

This is good news for brokers for whom first home buyers have provided a strong business flow in the past six months.

ABS housing finance figures showed housing finance rose a further 5% in February, representing a 24 per cent increase in finance approvals in just six months.

First home buyers as a proportion of all buyers also rose to a new high of 27.3%, compared to 26.5% in February and 16.4% in March 2008.

Shane Oliver, AMP chief economist confirmed the extension of the grant was good news for the property market.

“Overall it’s a very pro-housing budget,” he said.

The extension of the grant into the second half of the year should maintain activity but the postponement of the deadline could slow things down he said.

“Some of the first home buyer business may now have been brought forward,” he said.

Lending experts all confirm first home buyers were assisting in propping up the market. One stated:

“If you look at the long term average of first home buyers in the market it’s around 15 to 17 per cent. So we’re running around 10 per cent above system – that would be accounting for a fair bit of the increase in activity,” he said.

Observers confirm the extension of the grant is good news for the market but raises concern over the impact tighter lending policies are having. Minimum personal savings of 5% own funds for example.

The new policies have really only just started to take full effect. These March figures covers loans applied for in January and February when policies were much less stringent. We will see just how these lending policies are impacting the market in a few months.

Should you require guidance about applying for your First Home Loan or the First Home Owners Grant contact William at MacLean Finance 03 9802 0211, who is happy to answer all your questions.

With Interest Rates as low as 4.82%pa as an ongoing variable rate buying your first home now is an excellent idea.

 

Victorian First Home Buyers win government grant increase

First home buyers in Victoria will receive up to $22,500

in government incentives as of July 1

as part of the state’s budget measures

unveiled this week.

 

Assuming the federal government’s

first home owner grant

reverts back to $7,000 as of July 1,

the Victorian government will contribute $2,000

 to first home buyers in metro Victoria and

$11,000 if the dwelling is new,

resulting in assistance of $9,000 or $18,000.

 

Furthermore, regional first home buyers of new homes

will be eligible for an extra $4,500,

taking their total government assistance to $22,500.

 

The HIA Victorian executive director Gil King said:

 

“This is a proactive measure that recognises

the value of the residential construction industry

to Victoria’s economic activity and employment.”

 

“We expect the boost will provide up to 4,000

new jobs for the industry over the next

twelve months and provide opportunities

for apprentices right across the state,”

he said today.

 

Mr King also called for the federal government and

other state governments to follow suit.