Homeowners are worried about a potential interest rate rise, one writer has stated.
A possible interest rate rise is one worry for potential homeowners because it could affect their borrowing capacity.
This is according to Bina Brown, who advised consumers looking for a mortgage to start planning early, the Sydney Morning Herald reports.
She noted that the first homeowner's grant is not as generous as it previously was, however there are still other benefits on offer, which could appeal to consumers such as concessions and reprieves from stamp duty.
It might be that a state or territory offers first home buyers additional bonuses if they choose to purchase a property in a regional area.
She added: "Whether or not the money is enough incentive to buy a first home, anyone contemplating the move may need to do some extra planning."
But one measure that could be more appealing to potential lenders is putting money in savings accounts.
Those at least four years away from purchasing a home may be interested in the latest changes to the first home saver account.
This is because any accumulated savings made from buying a property in a four-year period can be put into an eligible mortgage, whereas the funds used to be forcibly transferred to the person's superannuation account.
Another advantage of the products - which are offered by Aussie credit unions and banks - is that the earned interest is taxed at 15 per cent, instead of the holder's marginal tax rate.
Holders of these accounts will find that the government will also lend a financial arm, as well as the interest paid by the bank, as it will pay up to 17 per cent of what is put into the account, up to a maximum of $850 a year.
A possible interest rate rise is also worrying consumers in general, according to the latest Commonwealth Bank Business Sales Indicator, which revealed that Australian retail figures were flat over the month of May.
By Emma North
