- The Help to Buy scheme officially kicks off this Friday with just two participating lenders - CommBank and Bank Australia.
- CommBank has limited participation of the scheme to those who apply direct with CBA, not a broker.
- This has angered the Finance Brokers Association of Australia - the FBAA says CBA is using a national scheme as a marketing tool.
- The shared equity scheme allows homebuyers to purchase with up to a 40% equity kick-in from the government, and homebuyers can enter with as little as a 2% deposit.
CommBank is one of two participating lenders for the new Help to Buy scheme which opens for applications on Friday 5 December with two participating lenders so far.
The other is customer-owned Bank Australia.
The long-promised scheme will see the federal government contribute 30% towards the purchase of existing homes or 40% towards newly built homes to eligible buyers with deposits as low as 2%.
But mortgage brokers have accused Australia's largest bank of undermining the initiative by locking them out of the process.
'Killing the goose'
The Finance Brokers Association of Australia (FBAA) said CommBank's decision to only accept Help to Buy loan applications in-house risks "killing the goose that laid the golden egg".
"The Help to Buy scheme is a 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," FBAA managing director Peter White said.
"Major banks are simply there to sell a product and, unlike brokers, they're not obliged to act in the best interests of clients and this gives them enormous power over a scheme that's meant to be all about boosting home ownership levels."
The comments are the latest salvo in the war of words over CommBank's stated plans to limit new home lending from broker channels and write more loans in-house.
Don't mention the war
The FBAA said it was not clear whether the federal government knew the scheme's major participating lender intended to restrict access to its Help to Buy loans.
"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," he said.
"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."
The Help to Buy Scheme sees buyers effectively purchase homes in conjunction with the government which then shares in any gains or losses when the home is sold.
At some stage, homeowners are required to buy out the government's equity share when they have the financial capacity.
See also: Australian Government Help to Buy Scheme
It is a different initiative to the recently expanded 5% Deposit Scheme which sees the government guarantee home loans for eligible homebuyers with low deposits, effectively helping them avoid the cost of lenders mortgage insurance LMI).
See also: Australian Government 5% Deposit Scheme
Participation in the Help to Buy scheme is capped at 10,000 places per year while caps have recently been lifted on the revamped 5% Deposit Scheme.
Brokers fuming
More than nine in 10 first homebuyers go through mortgage brokers to navigate their options and the homebuying process, according to independent research.
The FBAA is concerned it's being locked out from helping borrowers ensure they're getting the best deal.
"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," Mr White said.
"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."
A spokesperson for the federal Housing Minister said more lenders are due to be added to both the Help to Buy and the 5% Deposit Scheme by March 2026.
Two Australian states - Western Australia and Tasmania - are still to pass state laws allowing participation in the federal Help to Buy scheme.
It is currently available in all other states and territories.
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| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.89% p.a. | 5.80% p.a. | $2,962 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.99% p.a. | 6.02% p.a. | $2,995 | Principal & Interest | Fixed | $0 | $0 | 60% |
| Promoted | Disclosure | ||||||||||
5.93% p.a. | 5.93% p.a. | $2,975 | Principal & Interest | Variable | $0 | $395 | 70% | Disclosure |
