Home News FHOG boost to generate 15,000 new homes

FHOG boost to generate 15,000 new homes

Font size :

Up to 15,000 families are one step closer to home ownership, thanks to the Rudd government's $10.4bn bid to stop the Australian economy from falling into recession.

When the First Home Owner Grant (FHOG) was doubled for new house purchases in 2001, the number of new dwellings built increased by 3,000 per month over a nine-month period, according to the Housing Industry Association (HIA), Australia's largest building association.

HIA managing director Dr Ron Silberberg said the current $1.5bn boost to the FHOG will increase new dwelling production by 15,000.

"This measure will provide an immediate stimulus for new housing and help restore business confidence across the sector, particularly in the building product manufacturing sector," Silberberg said.

Prime Minister Kevin Rudd and Federal Treasurer Wayne Swan announced the $10.4bn Economic Security Strategy on Tuesday to strengthen the Australian economy "in the face of the worst global financial crisis since the Great Depression".

The FHOG boost was announced as part of the package to "stimulate housing activity and give first homebuyers a better chance in the housing market".

Effective immediately, first homebuyers who purchase established homes will be entitled to a $14,000 FHOG, up from $7,000, and those who purchase a newly-constructed home will receive an extra $14,000, taking their total grant to $21,000.

This is on top of the first homeowner's grants that are administered by each state, such as the First Home Bonus in Victoria, which tops up the FHOG by up to $8,000.

The scheme will benefit roughly 150,000 first homebuyers, and all contracts entered into by 30 June 2009 will be eligible.

REIA president Noel Dyett said the funding boost, combined with last week's reduction in interest rates, should provide "a much-needed impetus to first homebuyers who have been waiting to enter the housing market".

"The decision should also see a positive response by the home construction industry in increasing the production of new dwellings," said Dyett.

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Mortgage News and Articles

Mortgage applications drop in second quarter Mortgage applications drop in second quarter

This marks the “beginning” of a downward trend, says Equifax executive Read more

To break monopoly, many smaller lenders could become banks To break monopoly, many smaller lenders could become banks The proposed change could break the Big Four’s monopoly over the mortgage market and help families get cheaper home loan rates ... Read more

Borrowing against the home: A strategy to pay for aged care Borrowing against the home: A strategy to pay for aged care Such debts can generally be divided into long-term and short-term loans ... Read more

NAB slashes growth forecasts for houses, units NAB slashes growth forecasts for houses, units Numerous factors, including tighter credit rules and the growing supply of new stock, have reined in Australia’s seemingly unstoppable housing market boom ... Read more

More mortgage news and articles

Sponsored Links

Saturday, Jul 22, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Whether you're a first homebuyer, looking to refinance, or investing, it's important to have the right loan for your needs. Just fill in a few details below and one of our trusted mortgage advisers will contact you.

A quick & easy way to find the right home loan
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords