First Home Buyers Fuel Housing Market

Published: March 10, 2009 - 01:00 PM

The 7.30 Report has featured a story about first home buyers and the rise in new entrants to the housing market.

With interest rates at their lowest in years, and the government increasing the available first home buyers grant, the entry level housing market is fairing well.

The 7.30 Report told the story of Sarah Zajac and Matthew Tregent who are able to purchase their first home much sooner they expected. With mortgage interest rates the lowest in decades, they've taken on a loan of $378,000.

The couple are taking advantage of low interest rates and have taken out a mortgage of $378,000.

A home loan of this size currently has repayments of about $550 per week which is comparable to renting, which would only cost $100 to $150 less.

Alison Walter of ShopAround.com.au says that there are positives to be taken from the current economic climate.

"Interest rates are lower than they have been in years, with the official RBA interest rate at 3.25% which is 4% lower than this time last year. The low interest rates, combined with the excellent first home buyers grant available many people are taking the opportunity to enter the market much sooner than they had planned."

In NSW the state Government has added a further $3,000 New Home Buyers Supplement in addition to the $7,000 First Home Owner Grant and the Australian Government’s $14, 000 First Home Owner Boost. With the NSW Government’s New Home Buyers Supplement Scheme, first home buyers of new homes will receive maximum benefits of up to $24,000.

If you want to compare home loans and find the best mortgage ShopAround.com.au offers a free mortgage comparison service where in just a few minutes you can check out the great home loans available from over 30 lenders.

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