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.”
Can you afford to buy in this suburb? Find out how much you can borrow
Top Suburbs :
st kilda west
Get help financing your investment
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.
We value your privacy and treat all your information seriously - you can check out