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Fed: Home lenders want home buyers grant extended

05 Mar 2009 2:36 PM

Home loan providers want the federal government to extend the increased first home owners grant beyond June to help boost the sluggish housing market.

While there's debate over the effectiveness of the government's 10 billion dollar stimulus package in propping up the economy .. the increase in the first home owners grant has been seen as a great success.

The grant was doubled last October to 14 thousand dollars for established homes and trebled to 21 thousand for new properties and those increases are due to expire in June.

Mortgage and Finance Association of Australia chief PHIL NAYLOR has written to Housing Minister TANYA PLIBERSEK asking the government to seriously consider extending the timeframe of the grant.

Official data for housing finance released today shows first home buyers made up more than 25 per cent of all loans in December.

Mr NAYLOR says it means the proportion of first time buyers is at its highest level since 2001.