Matt Wright from Choice Home Loans said abolishing stamp duty for first homebuyers purchasing existing homes worth up to $650,000 would give young people a much-needed helping hand.

He said the decision would also help keep the Dubbo housing market moving along.

Mr Wright said Dubbo was already a good place for potential first homebuyers to look, because house prices were still affordable, but said removing stamp duty would save 

“On a house worth $350,000 stamp duty is around $11,000 so that’s a significant saving for someone looking to purchase their first home,” Mr Wright said.

“For some, that could help them get into that first home six or 12 months sooner or it could mean they don’t need mum and dad to go guarantor for them.

“Anything that helps young people with the dream of owning a home is a good thing.”

Previously, first home buyers were only exempt from paying stamp duty if they were purchasing a new home.

Mr Wright said that regulation excluded so many homebuyers because they couldn’t afford to build a new home, or found the process too daunting for their first involvement in the real estate market.

He said it was important for potential first homebuyers to talk to people within the industry and get plenty of advice before making a purchase.

He said it was also important for them to know just how much they can afford and factor in potential interest rate rises when deciding their budget.

“Interest rates being historically low has helped with affordability but this environment isn’t normal,” he said. 

“We would expect interest rates to be somewhere closer to 7 per cent than the current 4 per cent so it’s important to factor that in. “We do find most first homebuyers are pretty realistic and know what they can afford.”