Mortgage Choice has congratulated the Federal Government on its recent announcement that it is to increase the First Home Owners Grant from $14,000 to $21,000. This significant increase, teamed with a recent decrease in interest rates, should provide a much needed boost to the Australian housing market. With a further grant being offered to first home owners purchasing a new build, the Housing Industry Association expects the number of homes built over the next year to increase by 15,000.

Paul Lahiff, managing director of Mortgage Choice, believes that the move will improve the property sector throughout. “I would think the majority of housing industry participants, from buyers to builders, real estate agents, lenders and mortgage brokers, will be excited and pleased by this historic initiative,” he said.

“AustraliaÕs growing population, increasingly tight rental vacancy rates, slow release of land and the rising cost of building materials are all contributing to a demand for housing that is not being met as well as it could be,” said Lahiff. “Add this to property prices that are, on average, trending upwards, and you can see why potential first homebuyers are faced with a significant challenge.”

Lahiff added, “Mortgage Choice congratulates the Government on its continued demonstration of commitment to the housing affordability cause, and for first homebuyers in particular”.