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ISCOVER
Staff Reporter
Potential first home buyers have an exclusive window of opportunity to take advantage of a loophole in the government funded First Home Buyer Savings Accounts if they act before the end of the financial year, Loan Market has claimed.
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According to Loan Market spokesperson Paul Smith, any aspiring first home buyers could cut the waiting time to access their money in half by taking out an account between now and June 30th 2013.
"One of the big drawbacks of the accounts is that you have to keep the money in the FHSA for four financial years. However if you apply in June, you satisfy this criteria in as little as 2 years and 2 days. If a buyer opens an account this month, they can cut the waiting time for the benefits of this scheme in half," Mr Smith said.
Mr Smith said that FHSA’s are a well-intentioned initiative by the government, but the problem is that not enough people know about the scheme and they can be overwhelmed by the detail and rules.
"With the right planning and preparation, these types of accounts can significantly help borrowers boost their deposit. The government will annually contribute 17 per cent for deposits up to $6,000. It's impossible to find guaranteed returns like that anywhere else."
"With returns on savings accounts and term deposits dropping with the RBA cash rate, it's becoming more difficult for borrowers to find secure places with sizeable returns. A FHSA offers a guaranteed return, higher than most other investments. It just comes with lots of rules but with strategy it gives buyers a big advantage.”
