Industry veteran Paul Gollan has warned QLD’s new first home buyers’ scheme will have little impact without a radical overhaul of lenders’ practices.
His comments come after the Queensland government yesterday announced its abolishment of the $7,000 first home-buyers scheme, which will be replaced by a $15,000 scheme for buyers of new builds only.
Gollan told Australian Broker Online the scheme will not help borrowers get loans unless lenders loosen their savings requirements.
Under current rules, a sudden lump sum, such as the proposed $15k, is not considered part of a borrowers’ saving record, he said.
“If the government’s going to give [borrowers] $15k, the only way that’s going to actually provide a genuine stimulus is that if the buyers are able to use that as part of the money they need to actually get into a property.
“There are very few people in Australia that can genuinely save 5% or above in a three-month period.”
He said lenders should consider applicants who proved they could pay rent and save enough on the side for monthly mortgage repayments.
“That to me would be a lot more accurate way to assess it,” he said.
He acknowledged the new scheme would see demand swing from established properties to new builds, which would provide a “boost” to the construction industry.
“[But] whether it will actually provide extra stimulus or extra demand over and above what we’ve done anyhow, that remains to be seen,” he added.
“If the lenders come to the party with a slight tweak to their policies I think we could see a real impact there.”