Borrowers are having a hard time getting loans across the line trying to access HomeBuilder grants.
There has been plenty of interest in the scheme but mortgage brokers say the state and federal governments are proving a hurdle by not releasing all the details on how to access the money.
The delay is stopping lenders being able to advise applicants how the funds can be used.
Mortgage Choice chief executive Susan Mitchell spoke to Australian Financial Review.
“We haven’t been able to process one successfully because the states have yet to sign up,” she said.
“Once the states sign up, then the banks will figure out how to use the grant and how it works into the loan process.”
“But I don’t think any of the states have signed up yet. It’s frustrating for everybody.”
At homeloanexperts.com.au, managing director Otto Dargan says customer enquiries have certainly spiked since the grants were announced but there was still too much uncertainty coming from state governments.
“While the federal government has announced the scheme and the qualifying criteria, we are still waiting for the relevant state government authorities to announce how the grant works,” he told AFR.
“We know it will follow the same structure as the relevant First Home Owners Grant but we don’t know when it will be paid.”
Victorians must access the grant with their own state because it is implemented via a National Partnership Agreement which is signed by the federal government and each relevant state and territory government.
A Victorian Treasury spokesman told AFR they were not able to start handing out money yet while they wait for the federal government to finalise arrangements.
Over 23,000 Australians have so far registered their interest in the program.