Proposals to lower barriers for first-home buyers and boost housing affordability welcomed
The release of a Senate committee’s report on financial regulation and homeownership has drawn widespread support from industry stakeholders, who see it as a step toward easing barriers for first-home buyers and improving housing accessibility in Australia.
The Mortgage & Finance Association of Australia (MFAA), the Property Council of Australia, and national mortgage brokerage Loan Market have all backed key recommendations from the Senate Economics References Committee’s report, which include amending the Australian Prudential Regulation Authority's (APRA) mandate to prioritise first-home ownership and introducing more flexible serviceability buffers.
MFAA chief executive Anja Pannek (pictured above left) underscored the growing difficulties Australians face in entering the property market, citing rising interest rates and strict lending rules as significant hurdles.
“Many aspiring first homeowners literally can’t get a foot in the door,” said Pannek, who welcomed the Committee’s recommendation for APRA to adopt a more dynamic approach to its serviceability buffer — currently set at 3% — which could be adjusted according to economic conditions.
“Allowances for a lower serviceability buffer for first-home buyers at appropriate stages through the economic cycle to us makes sense,” Pannek said. “While the buffer is critical in managing systemic risk, our members have told us that along with other factors, the buffer can be a barrier for those trying to get a foot in the door, especially in the context of rising interest rates.”
The MFAA also supported the recommendation to expand APRA’s mandate to promote first-home ownership as part of its prudential objectives. Pannek argued this change would allow APRA to balance financial stability with the long-term social and economic benefits of increased homeownership.
Similarly, the Property Council of Australia welcomed the report, especially its focus on balancing regulatory oversight with better access to credit. Chief executive Mike Zorbas (pictured above centre) called for APRA to adopt a more flexible approach that supports housing accessibility while maintaining financial stability.
“Mortgages must not become the sole domain of the wealthy,” he said. “With the appropriate regulatory balance, we can match risk management with greater support for first-home buyers, ensuring the Australian dream of home ownership remains achievable for the young and ambitious.”
Zorbas also highlighted the broader issue of housing supply and urged policymakers to tackle planning and tax barriers to boost new home construction.
“Coupled with strong, nimble prudential settings, we need to improve planning and tax settings to boost the supply of homes across Australia,” he said.
David McQueen (pictured above right), chief executive of Loan Market, praised the inquiry’s recommendations but stressed the need for swift action. Like Pannek, McQueen believes that rigid serviceability buffers often restrict access to credit for borrowers who could otherwise manage loan repayments.
“While designed for stability, these buffers create inequities by pushing some borrowers toward non-bank lenders, where credit is often more expensive,” McQueen said.
He likewise advocated for “smarter, more dynamic policies” that adjust to changing economic conditions to balance financial stability with improved access to affordable credit.
McQueen also supported proposals to modernise lending practices, such as revising how HECS debt is assessed and simplifying government schemes to make loans more accessible.
“Expanding APRA’s mandate to prioritise homeownership and rethinking outdated policies will better serve both brokers and their clients,” he said.
How will these proposed reforms impact brokers and homebuyers? Share your thoughts and insights in the comments below.
