Due to the last minute rush by initial home buyers to avail a generous housing grant in September, home loan demands increased by up to five per cent.
According to the Australian Bureau of Statistics, owner-tenant home loans rose to 5.1 per cent or 65,505 for the said month. This growth ends a two-month slow home loan demand period. This growth overshadowed the three per cent rise that economists predicted.
Home loans for the month of September that were given to first time buyers was pegged at 26.1 per cent. This is 1.4 per cent higher than the rate in August but still 2.4 per cent lower than the rates during the month of May. This data preceded the RBA’s interest rate inflation for October and November.
However, this home loan hike is attributed to the government’s adjustment of the first home owners grant. For established houses, the grand was reduced to $10,500 from its previous value of $14,000. On the other hand, the grant for new properties was at $14,000. This rate is $7,000 lower than its previous rate.
The first home owners grant for both categories will revert to its original value of $7,000 starting January 1, 2010.
For information or to apply for a first home owners loan click here.
