Mortgageport has announced that it will not be passing the recent 0.25% cash rate increase by the Reserve Bank to its First Home Loan Deposit Scheme customers.
“We believe it is important that first-home buyers have an opportunity to enter the market, which is why we have supported them through our participation in the First Home Loan Deposit Scheme (FHLDS) for so long,” said Glen Spratt, Mortgageport founder and managing director. “This announcement reaffirms our commitment to remain competitive in this space.”
Since becoming the first non-ADI to be appointed for the FHLDS by the federal government in 2018, Mortgageport has supported more than 150 customers to buy their first home under the scheme.
“We recognise that first-home buyers are more likely to be affected by a rate rise and the longer we can hold off, the more time they have to build extra equity in their home, so we felt it was important that we did not raise rates at this time,” Spratt said.
Recent changes to the Mortgageport business, including a strategic partnership and a long-term funding support arrangement with BC Invest, have allowed the company to secure funds to support long-term growth and provide additional support to first-home buyers.
Effective July 1, the First Home Loan Deposit Scheme program will be renamed the Home Guarantee Scheme, and the number of places available under the First Home Guarantee (previously known at the First Home Loan Deposit Scheme) will increase to 35,000. The Family Home Guarantee will be increased to 5,000 places.
