Greater access to grants for low income 1st home buyers

30/6/96

Fair Trading Minister Cheryl Edwardes today announced improvements to the Home Buyers' Assistance Scheme which provides grants of up to $2,000 for low income earners buying their first homes.

The changes to the scheme result from recent amendments to the Real Estate and Business Agents Act.

Mrs Edwardes said the State Government had increased access to the scheme so more home buyers could benefit.

Since the scheme was reactivated with more realistic criteria in October 1994, almost 650 applications had been approved, giving grants totalling more than $1m.

To be eligible for the grants, first home buyers had to be buying established homes through licensed real estate agents. They had also to meet low annual income criteria varying from $30,000 in the metropolitan and near-country areas, to $40,000 in the North-West.

Homes being bought were not to exceed certain price limits, ranging from $85,000 to $110,000 depending on location.

"The scheme is designed to help first home buyers with incidental expenses such as bank and conveyancing fees and stamp duty," Mrs Edwardes said.

"It is funded through the Real Estate and Business Agents Supervisory Board from interest on buyers' deposits held in agents' trust accounts.

"Up to now, the scheme was available only to home buyers borrowing from banks or building societies. From July 1, eligible home buyers can apply to all types of lending institutions for loans to buy established homes.

"These include credit unions, finance brokers, mortgage originators and terminating building societies.

"Homeswest clients participating in Keystart, Realstart and Right to Buy Schemes will also now be eligible for these grants."

The Home Buyers' Assistance Scheme currently requires home buyers to lodge their applications within 60 days from the date when the offer to purchase the property is accepted. This period will be increased to 90 days.

Mrs Edwardes said this meant that from July 1, home buyers who entered into a contract on or after April 2 this year would be able to apply for a grant.

New home buyers who thought they qualified should contact their lending institution for application forms, but the Ministry of Fair Trading had also set up a hotline to provide advice and assistance. The number to ring was (09) 222 0743 or 1800 199 177 for country callers.

Media contact: Diana Russell Coote 421 7777