BANKS are rolling out incentives including cashback offers and special rate deals for first-home buyers to give them a financial reprieve as they battle the ongoing housing affordability crisis.
As entry-level buyers continue the fight to break into the market with soaring house prices in capital cities including Melbourne and Sydney, banks are looking at ways to snaffle new customers by giving them enticing deals to sign up.
ANZ is the latest lender to today on Monday roll out up to $1000 cashback to first home buyers as a reimbursement for their conveyancing fees — it will begin as a pilot program in Victoria and could expand to other states.
ANZ is rolling out a pilot program to give first-home buyers in Victoria up to $1000 back in conveyancing costs.Source:AAP
ANZ’s general manager of home loans Will Ranken said the move would give some borrowers a small windfall when signing up to their first mortgage as many struggle to buy their first home.
“The challenge for first-home buyers is multifaceted ... housing is too expensive and they need to save more for a deposit,’’ he said.
“Finding and buying a home is probably the biggest financial commitment they have ever done, the process is complicated and it’s a highly stressful situation.”
Other deals include giving first-home buyers getting special interest rates deals under four per cent and at cheaper prices than other mortgage customers to help ease the financial stress once they do purchase a property.
The Turnbull Government has discussed ways to help first-time buyers enter the property market sooner.Source:Getty Images
But Mortgage Finance Association of Australia’s chief executive officer Mike Felton urged all borrowers to look beyond incentives and look at the actual cost of the loan.
Mortgage and Finance Association of Australia chief executive officer Mike Felton said borrowers should always check the fees and charges of loan and not be enticed solely by incentives.Source:Supplied
“The key thing for consumers to do is look at the interest rate and look at the fees because those over the life of the loan is more important,’’ he said.
“Given the current house affordability problem we have, any assistance consumers can get should be viewed as a good thing.”
The Turnbull Government is in the throws of ticking off a plan that would assist first-home buyers by giving them generous tax breaks worth thousands of dollars under a plan to help younger Australians get their foot on the property ladder.
The plan which is similar to salary sacrificing would help savers get a deposit together more quickly and cut their tax bills.
Under the scheme first-time buyers could contribute $5000 of their pre-tax earnings to a savings account and reduce the taxable income by $5000 per year.