Market remains strong for First Home Saver products
There is still a strong market for so-called first Home Saver Accounts, according to Wollongong-based building society IMB Building Society.
The company has reported what it describes as a 300 per cent year-on-year spike in First Home Saver Account applications, in circumstances where similar products are not being offered by other financial institutions.
Commenting on the development, IMB chief executive Robert Ryan said the spike reflected the fact that such products represented an effective way of saving for a first home because it gave young people access to extra contributions from the Government and lower tax rates, making it easier for them to enter the real estate market.
"Getting a foot in the door of home ownership is increasingly difficult for young people, but the First Home Saver Account is a great way to boost your savings," he said.
Ryan said the Government paid an annual contribution on First Home Saver Accounts that could add up to significantly higher returns than those available on regular savings accounts, allowing first home buyers to save for their deposit faster.
"It could make the difference between buying your own first home or renting for a few more years," he said.
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