First Time Home Buyers Fake Contracts

Due to the government's new grant of $21,000 for first homebuyers, builders and real estate agents have been swamped by buyers in search of bargains.

Some buyers are being encouraged by dodgy real estate agents and mortgage brokers to change the date of existing contracts so that they fall after October 14, to enable them to qualify for the latest lucrative federal government grants.

By forward - dating their contracts could net first - homebuyers $14,000 instead of $7000 under the old grant system.

Since the government doubled the grant a month ago some financiers have reported a 25 per cent surge in Victorian mortgage sales.

Low interest rates and falling prices as well as the new grants are luring potential first homebuyers.

The building of new homes has slowed due to the global financial crisis.

The grant increase has sparked a sales boom in regional Victoria.

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Published on November 11-th, 2008 in Home Loans
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.

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