Biggest First Home Buyer Grant Ever Announced
The Tasmanian property market is set for a huge boost in first home buyers and construction after the government announced it was doubling the First Home Builder Grant (FHBG) to $30,000.
The $30,000 grant, which is the largest grant of its kind in Australian history, is available now for all Tasmanian residents. The aim of the grant will be to boost construction and migration to the island state.
Loan Market director Mark De Martino said the $30,000 grant was a huge benefit to buyers and would significantly help first home buyers better utilise their savings and pay off their home loans faster.
“The grant is going to help so many buyers avoid paying Lenders Mortgage Insurance or cover the cost of start-up costs like stamp duty and bank fees,” Mr De Martino said.
Mr De Martino said that other states would be closely watching the results of this grant as they struggled with their own low levels of first time purchasers and construction woes.
“This is the single biggest government concession we’ve ever seen to encourage first home buyers. It’s a particularly interesting one because it’s not just encouraging people to move from the inner-city to a newly constructed neighbourhood, its going to tempt buyers to move from one state to another,” he said.
Mr De Martino said that anyone considering taking up this grant should be shopping around with pre-approval.
“Pre-approval gives a first time buyer the confidence to know exactly what their limits are and what going above their target price range will do to their repayments. A mortgage broker will be able to use this grant to better calculate exactly how much a Tasmanian buyer can afford,” he said.
For more information on the government grants available in your state speak with your local mortgage broker on 13 LOAN or visit loanmarket.com.au for more information.