FBAA boss lashes out at Commonwealth Bank’s perceived snubbing of brokers in scheme
Finance Brokers Association of Australia (FBAA) managing director Peter White (pictured) has added his voice to the chorus of criticism emerging from the broking industry of the Help to Buy scheme rollout.
White worries that the exclusion of mortgage brokers from the scheme by Commonwealth Bank – which has been selected as the primary vendor of the scheme – risks undermining the initiative’s intended efforts to support first-home buyers.
CBA is “killing the goose that laid the golden egg” by excluding brokers, said White.
“The Help to Buy scheme is the game changer many aspiring homeowners have been waiting for, but CBA has slammed the door shut on thousands of buyers who rely on brokers to secure finance,” he said.
White’s comments echo those of Mortgage and Finance Association of Australia (MFAA) chief executive Anja Pannek, who stated that “consumers should be able to access government housing initiatives through their channel of their choice”.
Under the scheme, eligible Australians will be able to access a shared-equity deal where the government chips in up to 30% of the price of an existing home or up to 40% for a new build. Borrowers will be able to purchase a home with as little as a 2% deposit without lenders’ mortgage insurance (LMI).
But “if the nation’s biggest bank has an effective of veto over participants in the Help to Buy scheme, how does this support the federal government’s goal of creating a new generation of homeowners?’, said White.
His comments didn’t end there.
“By putting itself forward as a participating lender and then excluding applications from anyone other than direct clients of CBA, it would seem Australia’s biggest bank has taken a national scheme underwritten by taxpayers and turned it into a proprietary marketing tool.
“The fixation from major banks on excluding brokers from the home loan process comes with a huge downside for borrowers, many of whom won’t be eligible for products they offer.
“Brokers can help borrowers access a far wider range of products than those offered by the banks, products best suited to their own unique individual circumstances.
“There should be a level playing field under the Help to Buy scheme that caters for all borrowers, rather than shoring up the power of major banks to exert further market dominance.”
MPA has reached out to CBA for a statement.
