This article is from the Australian Property Journal archive
DEMAND for mortgages from first home buyers has dropped off dramatically since the Federal Government starting phasing out the beefed up grant.
According to leading mortgage broker Loan Market Group, demand from first time buyers have reduced 26% since the First Home Owners Grant was trimmed.
Loan Market Group chief operating office Dean Rushton said more than 150,000 people took advantage of the full amount of the boosted grant and it has been one of the most successful of the Government’s stimulus packages.
“We are getting more activity now from investors and people deciding to upgrade their homes,” he noted.
Rushton said tougher lending criteria by the major banks has also made it more difficult for some first time buyers to get into the market.
Australian Property Journal
