What does mortgage industry want from next government?

by Jayden Fennell17 May 2022

Ahead of Saturday’s federal election, two mortgage industry leaders have outlined what brokers want – with property ownership schemes and a commitment to not bring back the broker remuneration review their first priorities .

CEO of Lendi Group David Hyman (pictured above) said with house prices soaring across Australia, both Labor and the Coalition had outlined separate policies focused on helping individuals get into the property market.

“Given the number of first home buyers in the market are increasing each year and many more who are not eligible to purchase given their circumstances, the proposed schemes are limited to a small portion of the market,” Hyman said.

“While this is a good start, more needs to be done to help those struggling to get on the property ladder. Ultimately, housing policy needs to focus on more equitable housing outcomes across income brackets, including adequate provision of affordable housing for those who are unlikely to achieve home ownership.”

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Hyman said brokers know and understand the importance of home ownership for Australians, and brokers are invaluable to borrowers along their home loan journey.

“Labor’s Help to Buy scheme and the Coalition’s extension of its existing Home Guarantee Scheme as well as the recently announced Super Home Buyer scheme all aim to address the issues surrounding home ownership in Australia,” he said.

“While it’s encouraging to see the innovative steps being taken, more needs to be done to support prospective homeowners. Irrespective of where we land with housing policy and addressing affordability the role of the broker remains the same – to stay on top of market trends, help clients navigate their options, and demonstrate the lending options out there.

nMB managing director Gerald Foley (pictured below) said he would like to see the successful party hold its position coming into the election to not continue with a review of broker commissions.

“It is great for us to have commitment on the way in, and evidence the major parties now better understand the value mortgage brokers bring to the Australian mortgage marketplace,” Foley said.

“Let’s just hope that this position is held post-election.”

Foley said there was no doubt the mortgage industry had rallied well to stave off policies taken to the last election that would have proven to be disadvantageous for homeowners, borrowers, and investors.

He said the floating of schemes to assist more Australians into home ownership would be worth watching.

“It’s an interesting time in the property cycle to be looking at this. With an expectation of rising interest rates and slowing property growth, borrowers need to be careful in entering the market now,” he said.

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“I would like to see state and federal governments work more closely to remove duplicating schemes and both levels of government to streamline the availability. This makes it easier for everyone involved to understand what support is available, most importantly for the benefit of new borrowers.”

Foley said the outcome of the election would be listed under a win or lose column for the industry.

“We have certainly proven we can adapt and survive irrespective of which party wins or loses elections at a state or federal level,” he said. “The work done by many across our industry has positioned us to have the ear and work well with both key political parties.