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Jessica Darnbrough
A majority of mortgage brokers believe the housing market will be weakened by the Victorian, South Australian, ACT and NSW governments’ decisions to cut subsidies for first homebuyers.
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According to the latest Market Insights survey by 1300HomeLoan, 52 per cent of brokers expect the cuts to significantly weaken demand for homes as the subsidies were a key incentive to buy.
About 39 per cent believed they would weaken demand only “slightly” because the effect of the subsidies had been marginal, 6 per cent expected “no difference” because they would be offset by the RBA’s recent interest rate cuts and just 4 per cent believed the cuts would increase demand by signalling confidence in the market.
1300HomeLoan managing director John Kolenda said the survey showed most brokers believed government subsidies were a key plank underpinning the property market and that now was the wrong time to be cutting support.
“Common sense suggests that this is no time to be pulling the pin on one of the country’s key employment sectors especially given that homebuyers also have a huge impact on retail demand when they buy new furnishings and appliances,” Mr Kolenda said.
“The governments of Victoria, South Australia, the ACT and NSW need to implement stronger measures to support the market for both new and established homes, instead of trying to wash their hands of responsibility for this key industry.”
