Brokers' role in the FHB scheme

by Madison Utley28 Nov 2019

The Mortgage & Finance Association of Australia has been lobbying on behalf of brokers, highlighting the assistance they provide to first home buyers and stressing the importance of broker involvement in the First Home Loan Deposit Scheme.

According to MFAA CEO Mike Felton, the association has been “actively involved” in the consultation process, sitting on the Treasury Reference Group for the scheme, as well as making a submission to both Treasury and the National Housing Finance and Investment Corporation (NHFIC).

In consultation with the MFAA, the NHFIC has been working to produce a dedicated information portal to assist brokers with borrower eligibility criteria and educate on the process involved in securing the guarantee for broker customers.

Felton said the broker resource materials cannot be completed and distributed to its members until the NHFIC finalises the processes for the scheme, saying the matter is “out of [his] hands” at the moment.

NAB was selected as the first participant on the initial panel of lenders to offer guarantees under the scheme. The NHFIC has committed to announcing the other lenders on the panel before 20 December 2019.

The NHFIC’s Investment Mandate permits up to two major lenders to be appointed to the panel and to receive up to 50% of the 10,000 guarantees allocated per financial year, with a number of non-major lenders expected to be brought into the scheme as well.

The MFAA plans to “maintain ongoing engagement” with the NHFIC as final decisions are made regarding the scheme, and has promised to provide further updates to the industry as they come.

In the meantime, the NHFIC has published a tool allowing borrowers, lenders and brokers to check applicable price thresholds for properties across the country at: https://www.nhfic.gov.au/what-we-do/fhlds/eligibility/.