First home buyers make final rush

Potential rate rises and the gradual reduction of government grants could mean brokers will face one last wave of first home buyers.

The Reserve Bank announced yesterday it would leave the cash rate on hold at 3%, signaling the country is climbing out of the economic downturn.

"Economic conditions in Australia have been stronger than expected a few months ago, with both consumer spending and exports notable for their resilience," said RBA Glenn Stevens. Treasurer Wayne Swan has indicated that as the economy recovers, interest rate rises will become inevitable.

The prospect of rising rates combined with the gradual phasing out of grants, could be the domino that tips the remaining first home buyers to take action.

On 30 September the $14,000 grant for established homes will be reduced to $10,500 and the $21,000 grant for new homes will go down to $14,000.
If you want to get an indication of your borrowing capacity and loan repayments, please use the free finance calculators on https://www.intellichoice.com.au/17-calculators.chtm. The consultants from Intellichoice can also assist you with pre-approval, so give us a call today to find out whether you qualify and how we can help you own your home faster.