Home loans drop on weak demand in biggest fall in 14 years
April 06, 2011 12:29PM
The number of home loans approved in February fell 5.6 per cent, to a seasonally adjusted 45,393, data from the Australian bureau of Statistics showed / File
THE number of home loans approved in February fell at a greater rate than expected as the effects of the November rate hike started to hit households.
The number of home loans approved in February fell 5.6 per cent, to a seasonally adjusted 45,393, data from the Australian bureau of Statistics showed.
It's the lowest number of home loans approved in a month since February 2001.
And home loans in New South Wales plummeted 10.1 per cent in seasonally adjusted terms, the most since February 1997, Fairfax newspapers reported.
The Reserve Bank (RBA) would be concerned with falls in housing finance in NSW and Victoria for the month, which dropped 10.1 per cent and 4.6 per cent respectively, the said.
First Home Buyers in Victoria receive an additional payment known as the First Home Bonus when purchasing or constructing properties where the value does not exceed $600,000.
Under the bonus, eligible first home buyers receive additional funds to the value of $13,000 for sale contracts entered into until 30 June 2011 for newly constructed homes only (in metro areas). If you are buying a newly constructed property in a regional area, the First Home Bonus amount will be $19,500. To qualify, applicants must meet the same eligibility criteria as the first home buyers grant.
First Home Owner Grant – A Gift from the Government
Anyone buying a house in Australia for the first time (including migrants with permanent residence) is eligible for the First Home Owner Grant, a lump sum worth $7,000.
The First Home Owner Grant is paid directly to the buyer of a house in all Australian states. The grant is not payable for land purchases.
In New South Wales, Victoria, South Australia, Queensland, and most of Western Australia there is a house price cap of $750,000 for properties eligible to receive the grant.
Each individual state offers incentives in addition to the First Home Owner Grant.
First home buyers in NSW are exempt from paying stamp duty on house purchases of up to $500,000.
In Victoria first time purchasers are entitled to receive an additional payment $13,000 (for new homes only), known as the First Home Bonus (the Bonus). The First Time Bonus expires on 30th June 2011.
First home buyers in Western Australia pay no stamp duty on houses costing less than $500,000.
In Queensland, first home buyers in regional areas (not Brisbane or near Brisbane) can receive a $4,000 regional bonus. First time buyers of homes costing less than $505,000 can also receive a reduction of $8,750 on stamp duty – the First Home Concession.
In South Australia first home buyers are eligible for a First Home Bonus Grant (FHBG) of up to $8,000. A FHBG of $8,000 is available for first home purchases with a market value of up to $400,000, reducing to zero grant for properties of $450,000 or more.
In Tasmania a rebate of up to $4,000 is also available to First Home Owners purchasing property valued between $140,000 and $350,000.
Welcome as these are, these grants will not buy you a house in Australia. Unless you have substantial savings, you will need to get a mortgage from an Australian Bank.