Specialist lender Home Affordability Solutions (HAS) has committed to deliver 1,000 homes as part of its approach to tackling the housing affordability crisis.
The company, which aims to provide low-deposit borrowers with the ability to get into the property market through a shared equity solution, is in the process of expanding its funding and product options to reach its goal.
“The housing affordability crisis is a complex challenge that requires more than just access to loans,” said HAS CEO Beth Comino (pictured above).
“Our approach goes beyond traditional lending by addressing the root causes, providing clients with the tools and guidance they need to build strong savings habits and achieve financial independence faster through collaboration with brokers.”
Established in 2016, Home Affordability Solutions said it has built a strong foundation over the past eight years that allowed it to innovate and grow, with no defaults to date.
Comino said the company’s track record speaks to the ability to help clients navigate the complexities of homeownership.
“Now, we are ready to take the next step in our journey by delivering 1,000 homes – a clear demonstration of our confidence in our product and our dedication to making a real difference in the housing market.”
How the HAS loan works is that HAS provides a funding line of 17.5% LVR alongside an 80% LVR mortgage from a first lender, offering clients a chance to ease into the property market. Clients enjoy a fixed 3.25% interest-only rate for five years with HAS, matching the first lender’s loan term.
The security held is a second mortgage, ensuring clients retain ownership of the property. They remain eligible for government grants, which can contribute to their 2.5% deposit. All HAS fees and the first three years of repayments are included within the facility, reducing upfront costs.
Eligibility requires servicing both mortgages, a 2.5% deposit plus costs, and investor support. Clients can refinance and exit after three years.
By working with leading industry lenders such as Pepper Money, Liberty Financial, AXIS Lending, Mortgage Ezy and First Federal, HAS hopes to build out its new approach to homeownership that is both sustainable and impactful.
Additionally, the lender is partnering with a Real Estate Investment Trust (REIT) to fund its existing program but hopes to expand in the near future.
“Our proprietary structure requires far less capital to achieve significant housing outcomes. With an investment of $200-250 million, we can fund 1,000 homes, making our model highly efficient and scalable,” Comino said.
With the approach catering to young professionals, families, divorcees, migrants, and investors alike, all seeking to overcome the hurdle of a hefty deposit, HAS said it encourages collaboration with mortgage brokers.
The lender also has a broker accreditation program, which grants access to training packs, newsletters, and other resources.
“HAS acts as a lead magnet for clients,” Comino said. “Broker success secures your clients’ entry into the property market without LMI, ensuring lower repayments and minimised risk for investors.”
With demand for housing continuing despite the steep rise in interest rates, housing affordability continues to worsen and the goal of home ownership out of reach for many borrowers.
While the government has pledged to build 1.2 million homes over a five-year period, the reality on the ground is that the total figure of new housing is likely to be substantially less than that.
Comino said the lender recognises its role as a complementary player in the housing market.
“Instead of building homes ourselves, we find properties through consumers, enabling an immediate rollover,” she said.
“By favouring new properties, we encourage consumers to work with small and medium-sized builders, supporting local construction. With our proprietary model, we are fully set up and ready to go.”
