The opposition has stated that increases in interest rates could push thousands of recipients of first home buyers grants close to default.
Joe Hockey opposition treasury spokesman stated that he was concerned about people that had received grants up to $21,000 when interest rates were at an all time low, and that they would find it extremely difficult to meet their commitments when rates were to go up.
The Australian Bureau of Statistics recently released new figures showing that the value of new home loans fell by 2.3 per cent in July, compared with the previous month.
As the Reserve Bank and the Government have stated in recent weeks that rates will definitely go up again, Mr. Hockey told the Australian that the Government needs to pull back on economic stimulus spending to reduce the upward pressure on rates.
Mr. Hockey also stated that the greatest risk for first home buyers next year would be rising unemployment and higher interest rates.
Tanya Pilbersek the Federal Housing Minister felt that the first home owners boost was supporting local jobs and that a strong housing market was critical for boosting jobs in the Australian economy.