The Customer Owned Banking Association (COBA) has commended the Government for its intent to add more diversity to the panel of lenders in the expanded Home Guarantee Scheme (HGS).
“Our sector has a long-standing commitment to first-home buyers, and customer-owned banks serve an incredibly diverse range of communities with tailored solutions. More customer-owned banks on the HGS panel will create a more dynamic, inclusive, and competitive market. Ultimately, this increased competition and choice will benefit first-home buyers,” COBA CEO Michael Lawrence said.
Housing accounts for 94% of the customer-owned banking sector’s lending, with a significant portion dedicated to owner-occupied mortgages and first-home buyers. More than half (54%) of mutual banks and credit unions – 29 institutions in total – are not currently on the HGS panel.
“We welcome the Government’s announcement to diversify the lending panel. With their people-first ethos, customer-owned banks are perfectly positioned to support first home buyers through the Home Guarantee Scheme, and we hope to see many more working with the Government to help Australians buy their first home with the help of the HGS,” Mr Lawrence added.
Customer-owned banks collectively serve more than 5.4 million customers and are united by a commitment to people, but their strength lies in their incredible diversity.
“In a banking landscape dominated by a few major players, the standardised one-size-fits-all approach often fails to meet the diverse and nuanced financial needs of communities. Customer-owned banks offer a distinct alternative by providing a unique understanding and commitment to people and communities,” Mr Lawrence added.
Some customer-owned banks specialise in serving essential frontline workers like teachers, nurses, and police – many of whom can’t afford to buy homes where they work. To help, a number of these banks have developed innovative solutions to assist essential workers and their families to purchase a home in the community they serve.
Furthermore, many customer–owned banks are based outside capital cities including Toowoomba, Albury, Townsville and Broken Hill. This regional focus allows them to provide valuable support to first-home buyers outside metro areas.
The expansion of the HGS, set to take effect on October 1st, will allow all eligible buyers to secure a home loan with just a 5% deposit. The changes remove previous income caps and limits on the number of spots on the scheme.
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For further information or to arrange interviews, please contact media@coba.asn.au