Coalition promises mortgage buffer reform to aid first home buyers
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Photo by RDNE Stock project
The Housing Industry Association (HIA) has welcomed the Coalition’s election pledge to revise lending rules that it says are preventing Australians from entering the housing market.
HIA Managing Director Jocelyn Martin praised the proposal to review mortgage lending rules and serviceability buffers.
“The proposal to review mortgage lending rules and the serviceability buffers to tilt the scales back towards supporting first home buyers into home ownership is a strong and timely response to one of the most significant barriers to home ownership,” Ms Martin said.
The HIA has repeatedly raised concerns about lending regulations it believes are out of step with current economic conditions.
“HIA has consistently raised concerns about lending regulations that no longer reflect today’s economic reality. The current settings—particularly the 3 per cent serviceability buffer—are unnecessarily restrictive and are keeping people out of homes they could otherwise afford,” Ms Martin said.
The industry body identified access to finance as a critical barrier preventing more Australians from achieving home ownership, with ownership rates now at record low levels.
“Access to finance is one of the most significant barriers holding back more Australians into housing and with home ownership rates at record low levels, we need all levels of governments and all parties to look at all options to reverse this worrying trend,” Ms Martin said.
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The HIA noted that it has previously lobbied governments and the Australian Prudential Regulation Authority (APRA) to consider how financial regulations impact housing affordability and first home buyer market access.
Ms Martin called on all political parties to prioritise home ownership in their housing policies.
“We urge all parties to put the goal of home ownership at the centre of their housing policy platforms. This is an opportunity to restore greater equity to the system and give more Australians the chance to own their own home,” she said.