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Two of Australia’s Major Banks; National Australia Bank and Westpac Banking Corporation; do not require borrowers to provide a savings history prior to acquiring a mortgage. First home buyers grants are sufficient to cover a whole deposit. First Home Buyer Government grants of up to $29,000 means borrows can obtain a mortgage up to $420,000 without having to contribute any of their own savings to a deposit, this is provided the borrower meets the usual income serviceability criteria. Many lenders have introduced ‘genuine savings’ criteria’s asking borrows to provide evidence that they have contributed their own funds to the deposit. |
In the last two to three weeks the Commonwealth Bank of Australia requires first home borrowers to have at least 3 per cent of a deposit amount.
A genuine savings of 5 per cent of a property valuation where the loan-to-value ratio is greater than 80 per cent is the requirement from Australia and New Zealand Banking Group.
First Home Buyer Grants:
|
VIC |
Established Property |
Newly Established - Metropolitan |
Newly Established - Regional |
|
Federal Govt Assistance |
$14,000 |
$21,000 |
$21,000 |
|
State Govt Assistance |
$3,000 |
$5,000 |
$5,000 |
|
Regional Bonus |
- |
- |
$3,000 |
|
Stamp duty relief based on $500,000 |
$21,970.00 |
$21,970.00 |
$21,970.00 |
|
Total |
$17,000 |
$26,000 |
$29,000 |
|
NSW |
Established Property |
Newly Established |
|
Federal Govt Assistance |
$14,000 |
$21,000 |
|
State Govt Assistance |
|
$3,000 |
|
Stamp duty relief based on $500,000 |
$17,990 |
$17,990 |
|
Total |
$14,000 |
$24,000 |
|
QLD |
Established Property |
Newly Established |
|
Federal Govt Assistance |
$14,000 |
$21,000 |
|
Stamp duty relief based on $500,000 |
$8,750 |
$8,750 |
|
Total |
$14,000 |
$21,000 |
Westpac Banking Corporation and Commonwealth Bank of Australia have revealed that 60% to 70% of their home loan customers continue to maintain their loan repayments at the higher amounts (pre interest rates cuts) in order to repay as much as they can off their loans and create a buffer.
The federal government stated that the First home buyer's boost scheme grant would be available until June 30 2009; this small time frame of the incentive has had the desired affect and seen First Home Buyers finance loans increase to their highest levels ever.
Certain that the First Home Buyers have enjoyed this stimulus, the Government may now look at ways to motivate other sectors of the housing market as of July 1 2009. Stimulus for investors or multiple home buyers would be extremely welcoming.
