Home saver account holders will need to wait four years to use the money for a house under the new Federal budget.
Treasurer Wayne Swan announced the Federal budget yesterday (May11th) and revealed that those with a first home
saver account will see changes to the deals.
Subject to Royal Assent, new legislation coming in will mean that savings accounts linked to properties will need to be kept for a minimum of four years before the money is used to purchase a new home.
According to the new regulations, people who purchase a property before the four year wait is up will need to transfer the balance of the home saver account into a super.
"The rules are proposed to be amended to allow savings in the account to be paid into an approved mortgage after the end of a minimum qualifying period, rather than requiring the amount to be paid into super," a statement from Mr Swan read.
Governor Glenn Stevens, from the Reserve Bank of Australia, recently announced that the body has decided to raise the
interest rate by 25 basis points to 4.5 per cent due to improved global economic conditions.
Posted by Joe Letts
