First-home buyers have the kind of problem we’d all like to have – they’re overwhelmed by the range of government support measures that are currently available, according to a new survey.
The survey found that prospective first-home buyers are confused and overwhelmed by the housing market and the number of grants and incentives available to them, – and it’s stopping some from actually following through.
Most were unclear or did not know about first-home buyer grants and schemes – 85% said they did not know what the First Home Loan Deposit Scheme was and had never heard of it.
A further 32% did not understand the grants offered by state governments across the country to help first- home buyers get on to the property ladder.
The survey commissioned by mortgage brokers Aussie quizzed 1,024 Australians looking to get into the property market in the next five years.
Aussie chief customer officer David Smith says the results are surprising, adding that the coronavirus pandemic has increased confusion about the market, as had new initiatives such as the First Home Loan Deposit Scheme.
The scheme enables first-home buyers who qualify to get a mortgage with a 5% deposit without needing to pay for lenders’ mortgage insurance. The second round of applications opened on 1 July. “With seven out of 10 people saying they are confused straight off the bat, it’s a significant proportion of first-home buyers,” Smith says.