A non-major bank celebrating having helped 350 Australians enter the property market through the government’s First Home Loan Deposit Scheme (FHLDS) has revealed that more than 80% of the loans went through a mortgage broker.
Customer-owned P&N Bank reported that from the start of its involvement with the scheme in February through to the end of November 2020, 285 of the 350 relevant first home buyers opted to go through the broker channel.
To P&N Bank general manager Anna Pearce, the data makes abundantly clear the value brokers bring to consumers.
“Our figures clearly demonstrate that first home buyers have embraced the flexibility and support that our WA broker partners provide to West Australians, especially given the disruption and impacts of COVID-19,” she said.
“We look forward to helping more of them assist their clients purchase their first home as part of the second tranche of the scheme.
“With our broker offering a key part of our new transformative five-year strategy, we are focussed on building further scale to ensure we can fully support the current and future needs of our broker partners and their customers while optimising our involvement in schemes such as the FHLDS.”
Pearce also provided context to the importance P&N has placed on helping aspiring homeowners access the scheme since its launch, particularly as it’s the only Western Australia-based bank to be appointed as a participating lender in the initiative.
“The scheme has removed the usual eligibility barriers that many face when entering the property market, providing an opportunity for more West Australians to buy their first home,” she said.
“With the property market heating up, we have seen an uplift in home loan activity over the past four months, with many first home buyers now able to access the FHLDS alongside the additional state and federal housing incentives launched to provide an economic boost during COVID-19.”
The bank now reports that first home buyers make up 32% of all the group's new owner-occupied borrowings, up from an average of 12% since becoming a scheme participant in February – a figure that “clearly shows the positive impact the FHLDS is having” as far as Pearce is concerned.
