Aussie welcomes pause on NSW Stamp Duty

Media release

27 July 2020|4 minute read

 

Leading mortgage broker Aussie has welcomed the NSW government’s temporary pause on stamp duty on new homes under $800,000 for first home buyers amid the COVID-19 crisis.

The state government also announced there would be concessions available for the purchase of new homes under $1 million in value, up from the previous limit of $800,00, while lifting the stamp duty threshold on vacant land from $350,000 to $400,000.

The announcement follows as other government support measures kick in, including a new round of the First Home Loan Deposit Scheme from July 1, and as the Federal Government’s HomeBuilder program also gets underway, in which owner occupiers will be given $25,000 towards the cost of building or renovating their property by the end of 2020.

New home buyers will also be eligible to save up to $31,000, with the NSW Government continuing to offer a $10,000 First Home Owner Grant for homes worth no more than $600,000 and house and land packages worth less than $750,000.

Aussie CEO, Mr James Symond said, “We welcome the NSW Government’s decision to temporarily pause stamp duty on new home builds, as this will provide a lifeline for aspiring first home buyers during this critical time.

“Important initiatives like this will have positive outcomes for so many hopeful first home buyers, the housing and construction industry, and the entire NSW economy," Mr Symond said.

“While the stamp duty relief is temporary and only available for the next 12 months, it’s important for first home buyers considering purchasing a new home to understand their financing options and the range of conditions that apply,” he added.

Aussie has reported an influx of inquiries from first home buyers and customers seeking to take advantage of both the grants and the lower rates now being rolled out by lenders. Mr Symond attributed staggering 219 per cent rise in first home buyer enquires during June compared to the same period last year, to the combination of lower mortgage interest rates and the range of new and existing federal and state government schemes on offer.

Recent research released by Aussie revealed 1 in 3 first home buyers are unaware of the variety of Federal and State Government grants and schemes to help them get into the property market.

The research also shows aspiring first home buyers are struggling to navigate the mortgage market themselves, often feeling overwhelmed and confused with 7 in 10 first home buyers expressing they want to take advantage of the current market conditions but feel they don’t know how.

“Given the current market and economic conditions, our research show 5 in 6 first home buyers admit they want more financial guidance and our research shows most intend to use a broker to achieve their property goals,” added Mr Symond.

“A decision to see a broker could save first home buyers time and money as both state and federal governments seek to provide valuable support during this time,” said Mr Symond.

He said there were important questions first home buyers should ask their broker about government incentives at a time when so many options are available:

  • Am I eligible for the concessions and grants?
  • Do the incentives run in parallel to each other?
  • What are the deadlines in accessing the various schemes?
  • What deposit do I need to secure a loan in combination with the concessions and grants?

Aussie Brokers have access to a range of lenders and can provide home loan help for those looking to take advantage of the scheme. Customers can book a free appointment with an Aussie Broker by calling 13 13 33.

 


 

About the Research

The research was commissioned by Aussie and conducted by Lonergan Research during June 2020. The study was conducted with over 1,000 mortgage holders to uncover their attitudes and knowledge regarding refinancing their home loan. After interviewing, data was weighted to the latest population estimates sourced from the Australian Bureau of Statistics.

About Aussie

Aussie was founded in 1992 and was widely credited for bringing competition to the Australian home lending industry. For nearly 30 years, Aussie Brokers have put progress withing reach of more Australians, helping over 1.3 million customers with their home loan. Today, Aussie has the largest retail footprint across Australia.

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Contact Tim Allerton, City PR on 0412 715 707