Liberal senator Andrew Bragg has appeared on The Adviser’s In Focus podcast to reveal what the new home ownership inquiry will look at and why he wants to hear from the broking industry most.
Liberal senator Andrew Bragg joined Annie Kane on The Adviser’s In Focus podcast the discuss the home ownership inquiry.
In a time of mounting challenges for first home buyers and a housing market in flux, Bragg’s recent appearance on The Adviser’s In Focus podcast represents a crucial moment for the home ownership inquiry currently being conducted by the Senate economics references committee.
Bragg, the committee’s chair and shadow assistant minister for home ownership, provided in-depth insights that are not only timely, but also set the stage for meaningful reforms in Australia’s housing landscape.
Bragg’s conversation on the podcast, hosted by Annie Kane, offered a timely and comprehensive look into the inquiry’s objectives and the potential impacts on both the lending industry and prospective home owners.
For stakeholders across the mortgage and real estate sectors – key audiences for Momentum Media – Bragg’s interview acts as a beacon of clarity and a call to action for those wanting to submit to the new inquiry and shape the future of home lending in Australia.
Key highlights from the interview
1. Addressing the 3 per cent buffer: One of the standout points for the inquiry will be whether the 3 per cent buffer imposed by APRA on mortgage assessments is still appropriate. With interest rates approaching their peak, Bragg questioned the continued necessity of this buffer, arguing that it could be exacerbating the challenges faced by first home buyers. For mortgage brokers and lenders, this is a critical issue. The buffer’s impact on mortgage approvals is significant and any potential review or adjustment could alter the dynamics of the lending process.
2. HECS debt and its implications: The inquiry will also look at how higher education debts (HECS debt) are influencing home loan accessibility. With many young Australians struggling to secure mortgages due to their HECS liabilities, Bragg highlighted the need for the inquiry to explore ways to mitigate this burden. This perspective is particularly valuable for brokers who frequently deal with clients encumbered by substantial student debt.
3. Regulatory reforms: The podcast further illuminated the committee’s stance on regulatory reform. In the podcast, Bragg expressed a desire to streamline complex and overlapping regulations that currently burden both lenders and borrowers. This is a key area where brokers and financial institutions could benefit from simplification, making it easier to navigate the lending landscape and serve clients more effectively.
Why this matters for Momentum Media’s audiences
For Momentum Media’s audiences, understanding the committee’s focus areas allows them to better tailor their submissions to the inquiry. By aligning their submissions and feedback with the issues Bragg emphasised – and providing data to prove their points – Momentum’s readership can better influence the inquiry’s recommendations and advocate changes that address the real-world challenges faced by their clients.
As Bragg flagged in the podcast, industry participation is of crucial importance to the inquiry process. Brokers and other players in the lending industry have been encouraged to engage by submitting evidence, participating in consultations, and presenting their perspectives to ensure that the final recommendations are well-informed and balanced.
For mortgage brokers, lenders, and other stakeholders, staying abreast of these developments is essential for navigating the evolving housing market and advocating policies that support a more accessible and equitable home ownership experience.
You can listen to The Adviser’s In Focus podcast interview with senator Andrew Bragg here.