Massive home loans savings window closing soon

A massive savings grant for first home buyers in Tasmania is set to end in June. Prospective buyers should act fast to take advantage of these savings before they’re no longer available.

Loan Market Launceston mortgage broker Kristy Wilson said the current First Home Owners Grant (FHOG) saved buyers $7,000 and was often times enough to cover the start up costs associated with a new home loan.

“One of the most common uses and biggest benefits of this grant is that it helps buyers cover costs such as stamp duty and legal fees. Without this, grant buyers would have to pay those fees out of their deposit or add them into their loan repayments,” Ms Wilson said.

Ms Wilson said she’s been getting a steady increase in enquiries from first time buyers since the grant was introduced in 2000 but with the grant closing in less than two months, it was important any prospective buyers knew how much they could save.

“The FHOG has ceased in most other states and it’s made it difficult for first time buyers to crack those markets. In Tasmania, first time buyers only have a limited period of time to use this grant. For many buyers, it may take years to save up the additional money this grant saves them.”

Ms Wilson said it’s unlikely the state government will introduce any other grants to replace the FHOG and that the First Home Builders Boost ended in December, meaning buyers could miss out on a potential $30k in savings.

“To be eligible for the FHOG that ends on the 30th June, the contract to purchase must be signed before that date. The First Home Builders Boost continues until the 31st of December. Buyers need to enter into a contract with a builder before 30th June to get the entire $30k or by 31st Dec to get the $23k,” she said.

Kristy Wilson is a mortgage broker based in Launceston and can help you determine if you’re eligible for the FHOG. She can also show you your loan options from over 30 lenders and 1,000 products.