Victorian budget gives help to first home buyers

While the industry waits to hear if Wayne Swan will increase the boosted first home owners grant beyond 30 June in next week's federal budget, Victorian borrowers have already been given a helping hand.

In its budget released on Wednesday, the Victorian government announced it would boost the amount offered to people buying new homes from $5,000 to $11,000 in metropolitan areas and from $8,000 to $15,500 in the regions.

Mortgage broker, the Loan Market Group, said this move should be commended and urged the federal government to follow its lead and offer more incentives in next week's Budget for first homebuyers.

Loan Market Group executive director John Kolenda said it would like the government to extend the boosted grant in its present form for another six months beyond its scheduled June 30 expiry.

"But if that is not to be the case, it would be good to see the government in the Budget continue increased incentives for those purchasing new homes," he said.

Related stories:

Gov't stimulus boosts housing sector