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High profile politician throws support behind plan to let FHBs access super

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Australian Broker | 30 Jul 2014, 05:50 AM Agree 0
A prominent politician has thrown support behind calls to allow first homebuyers to access their superannuation to pay for a house deposit
  • Steve McClure | 30 Jul 2014, 10:45 AM Agree 0
    Umm, has anyone looked up the Canadian scheme and thought it through?

    Maybe the reason Canada has it, is they don't seem to have the substantial FHB grants that Australian receive, just some tax rebates and concessions.

    Their first home buyers have to have the amount already in an RSP (retirement savings plan). They can't withdraw more than $25,000, assuming a young person has that accrued already. Then, they have to pay it back, each year within 15 years, being a commitment that the lenders factor into the servicing. It also means that while the money is out of the fund, it's not attracting an investment return for which it's intended, i.e. retirement. Sure, still investing in property, but if people use the scheme as an easy way to access super prematurely, is that undermining the imperative of super?

    I'd rather see our FHOG's smaller, but stretched across both new & non-new homes and the buyer could top it up with an interest free loan over 15 yrs, so it doesn't detract from their super. This would allow a lot more new entrants than the Canadian scheme.
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