The Rudd Government have ruled that the first home buyers grant will not be extended past its June 30 deadline, despite industry groups urging the Government to extend the grant.
The grant has been successful in luring many first home buyers into the market, and has helped to boost the economy. Mortgage Choice chief executive Paul Lahiff said that in February alone, more than 25 percent of all brokered loans were for new dwellings.
However, the Government would not budge on the issue.
“We’ve indicated that we will conclude in a very fixed and finite timeframe,” Mr Rudd said in a speech to the public at the latest community Cabinet meeting in Western Australia.
He stated that while the grant has had a real effect on the property market, it is important that we “understand that deadlines are imposed for a particular purpose.”