FHOB Applicants Urge to Act within 4 Weeks

Tuesday October 20, 2009

The deadline for the First Home Owner Boost may be 31 December 2009 but industry professional Mortgage Choice has warned would-be applicants that they should not hesitate when it comes starting the loan application process due to long processing times.

First homebuyers wanting to get their property finance plans approved for the loan are recommended to actually submit their applications within the next four weeks, says Mortgage Choice, who says that the attached loan processing times for approval in so drawn out that fast action is required to make the New Year deadline, with waiting times ranging from days to six weeks.

Mortgage Choice senior corporate affairs manager, Kristy Sheppard said, "While processing times will vary between lenders, the next four weeks are crucial for many buyers wishing to receive the Federal government's incentive"

"Eligible borrowers need to ensure they have applied for finance at least six weeks prior to the First Home Owner Grant boost deadline, by mid November, to allow adequate time for loan processing and grant application." Ms Sheppard stated in a release from Mortgage Choice.

Ms Sheppard said that the industry leading Mortgage Choice recommends that people educate themselves about the mortgage industry to give themselves a competitive edge when it comes to coming out first against other mortgage applicants and property buyers.

"Property buyers must remember that while handouts and concessions are tempting, they are not the be-all and end-all. Many first time buyers have made the move to property ownership since the Boost was announced in October 2008, however there are a great number who will miss out - for good reason.

"Deciding what to buy, where to buy, how much to spend and contending with lenders stricter finance criteria are only half the battle. Making the decision of when to buy is just as important." Ms Sheppard stated.

Mortgage interest rates have come under even greater scrutiny after the recent rates rise by the Reserve Bank of Australia with many consumers now being warned to prepare themselves for the years ahead with higher rates, or rather, a return to normal interest rates.

"As mortgage interest rates are expected to return to more ';neutral' levels of between seven to eight percent, first time buyers need to put the First Home Owner Boost aside and research their true limits - financially and emotionally - before taking on what is often the largest financial commitment many Australians will make," according to Ms Sheppard.

It is suggested that people looking to take on their first mortgage should keep the following factors in mind:

• The borrowing level for potential properties
• What they are qualified to borrow
• What are their loan repayment limitations

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