Friday, August 28, 2009

NEWS: First home owner grants

If you're a Australian home buyer waiting to lay your hands on the $14,000 boost to buy an established property before September 30, you'd better be quick.
Initial news about the grant said first home buyers had until September 30 to SIGN A CONTRACT - but a chat with the media spokesperson for Federal Housing Minister Tanya Plibersek today has dashed that.
First home buyers actually have to ensure their MORTGAGE FINANCE IS FINALISED by September 30.
"I thought it was just contracts had to be exchanged by that date, but I found out yesterday that's not the case - the contract has to be further advanced," the spokesman told me.
Earlier this year, the banks were taking up to four weeks to finalise mortgage applications.
Now that 90% of all home loans are being written by major banks, the banks were inundated with first home buyer mortgage applications and some buyers were waiting weeks to have their mortgages approved.
... which would be a disaster if you're still searching for that perfect first home and hoping to snare something by September 30.
Canstar Cannex, a ratings company scrutinising mortgages and financial products, say those mortgage waiting times have been reduced and banks should take one week - maximum two - to process all mortgage applications.
Which means that if you want  your$14K, you'd better get house hunting!
The official statement from Commonwealth Treasury says:

"The First Home Owners Boost (FHOB) is administered by the States and Territories, with funds provided by the Commonwealth.To be eligible for the FHOB, the applicant must first be eligible for the  First Home Owners Grant (FHOG) according to legislation in their state or territory.To be eligible for the FHOG, the applicant must have completed an 'eligible
 transaction'. In most states/territories, legislation provides that an 'eligible transaction' is completed (in the case of purchase to contract a home) when the purchaser becomes entitled to possession and any other requirements under regulations have been complied with. Different provisions exist for contracts to build a home, and also for
building undertaken by owner builders. Entitlement to possession would not occur until finance had been approved. As such, any contracts that were still subject to finance and not finalised before 1 October would not be eligible for the full amount of the relevant
 FHOB grant."

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