First homebuyers need push from banks

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Queensland’s new first home buyers’ scheme will have little impact unless lenders change their policies, it has been claimed.

BrokerLoans’ Paul Gollan told Australian Broker Wednesday that the scheme will do little to help borrowers secure loans until lenders relax their savings requirements.

Under the new first homebuyers scheme, the Queensland government has promised to replace its current $7,000 payout to first-time buyers with a $15,000 one for buyers of new homes only. 

Gollan points out, however, that under current lender rules, a sudden lump sum, such as the proposed $15,000, is not considered part of a borrowers’ savings record. He said that this restricts the scheme’s impact. 

“If the government’s going to give [borrowers] $15k, the only way that’s going to actually provide a genuine stimulus is if the buyers are able to use that as part of the money they need to actually get into a property.” 

He said lenders should consider applicants who proved they could pay rent and save enough on the side for monthly mortgage repayments.

“That to me would be a lot more accurate way to assess it,” he said. 

He acknowledged the new scheme would see demand swing from established properties to new builds, which would provide a “boost” to the construction industry. 

“[But] whether it will actually provide extra stimulus or extra demand over and above what we’ve done anyhow, that remains to be seen,” he added. 

“If the lenders come to the party with a slight tweak to their policies I think we could see a real impact there.”

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  • Vlad says on 24/10/2012 04:29:08 PM

    If I were the banks, I'd say "Ok, we'll consider the $15,000 but we expect you to have 25% of the sale price instead of 20%" (or whatever). I think the reasons behind why banks do what they do is because they know that not having a good savings history, is a risky thing to them. The Government should look at converting their people to savers, not spenders or we'll end up like the US.

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