Home Guarantee Scheme to Expand from July 1st: 3 Impacts for Mortgage Brokers
The Albanese Government has recently announced that it will be expanding the criteria of the Home Guarantee Scheme to enable more people to participate in the different guarantee schemes, from the 1st of July. This includes the First Home Guarantee, the Regional First Home Buyer Guarantee, and the Family Home Guarantee, which are all expanding as the Government continues to address Australia’s housing challenges.
Among the main changes, the guarantee expansion will incorporate permanent residents in the guarantee schemes, will broaden the eligibility criteria for joint applications, will allow more single guardians to use the Family Guarantee, and will enable those who have previously owned properties to join the scheme.
Whilst the Home Guarantee Scheme facilitates eligible borrowers access to housing loans, more potential borrowers may now qualify for the scheme and seek out the services of mortgage brokers to assist them in securing a house loan. So, what does this result in for mortgage brokers?
What does this mean for mortgage brokers?
There are 3 things that mortgage brokers should consider and be mindful of from the 1st of July.
- Increased applications,
- Higher level of guidance and support, and
- Higher competition in the industry.
Increase in inquiries and applications for housing loans.
As these changes build on the opportunities available to Australian home buyers, more individuals will now be eligible for the Home Guarantee Scheme, thanks to the announcement made by the Federal Government. Subsequently, this means there is increased opportunities for individuals to take advantage of, and with that, there is an increased number of borrowers seeking home loan applications.
In other words, mortgage brokers may see an increase in their client base, with more potential clients applying for home loans, and more potential clients for mortgage brokers to work with these people. Ultimately, expanding the Home Guarantee Scheme can predominately enhance business for brokers; an opportunity to generate revenue, and build long-term relationships with these prospects.
Enhanced need for mortgage brokers to provide a higher level of guidance and support.
With an increase in inquiries and applications, mortgage brokers need to be fully prepared and committed to the guidance and support provided to clients. Mortgage brokers are experts in navigating the application process and finding the most suitable loan options for clients’ financial situations. Thus, when new elements are introduced to schemes, it is essential to be fully accurate in the information provided to clients and remain committed to providing a higher level of care for each one of your clients.
Obtaining a mortgage can be an overwhelming experience, thus, ensuring that you make the experience one that flows and provided information is easy to understand is helpful for first-time borrowers.
The highly competitive space of the Australian mortgage industry may attract more lenders offering competitive loan products.
Expanding the availability of the Home Guarantee Scheme can attract more lenders to the market, leading to increased competition among mortgage brokers. With more lenders offering loan products, mortgage brokers may need to work harder to differentiate themselves and offer a unique value to their clients that a lender could not provide.
It is for this reason that a mortgage broker will need to optimise their ability to stand out in a crowded market and set themselves apart from other brokers and lenders. An increase in competition from other mortgage brokers and lenders can potentially impact the number of clients available for a broker’s business, and as such, mortgage brokers must reinforce their point of difference to prepare for a change in the market. As a mortgage broker, to remain competitive, it’s important to stay informed about the latest developments and to prepare yourself for any necessary adaptations to your strategies.
Here’s how Vision Aggregation can help you adapt to the expansion of the Home Guarantee Scheme.
Whilst the expansion of the Home Guarantee Scheme in Australia, which is coming into effect from the 1st of July, can have both a positive and negative affect on mortgage brokers, Vision can help mortgage brokers adapt to this change.
Whilst the expansion can potentially enhance business for brokers by increasing the client base, its also necessary to have access to the right tools and resources to help you maintain this client base. Additionally, increased competition from lenders and other brokers may arise, thus, having the guidance from a superior aggregator can help you navigate the abundance of competition and help you to stay competitive and successful.
At Vision, we have the tools and resources to do just that. Contact us today.
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