Posted March 07, 2020 08:59:25A real estate investor looking to take advantage of the government’s mortgage guarantee scheme will be able to do so through a partnership between two big real estate companies.
In a statement issued on Monday, both companies said the partnership, called HomeInvest, would help people with real estate finance, and the new agreement will see HomeInvest and its partners provide loans for residential properties worth up to $50,000 a home.
“The HomeInvest loan guarantee program has been a success story,” said Mike Brown, chief executive officer of HomeInvest.
“This partnership with the Australian Securities and Investments Commission will make sure the program is in place for Australians with low to moderate mortgage balances.”
The Government has been seeking to get the loan guarantees into the real estate market, particularly in the market for detached houses, to help with the cost of building new homes and to provide financial stability to the financial system.
“In Australia today, the housing market is at a low point in terms of affordability, and with interest rates at historic lows, this is the only way that we can create affordable housing in Australia,” Treasurer Scott Morrison said on Monday.
The new partnership with HomeInvest will see the company provide up to two home loans worth up from $50 to $200 per loan.
HomeInvest will be the sole lender, but HomeInvest partners with other lenders, such as HomeAway, which will also be providing loan guarantees.
“We’re confident that HomeInvest’s commitment to our borrowers and the ability to provide a high-quality, long-term loan to those in need is a key driver of our growth in the sector,” Mr Brown said.
“Our loan guarantees will help people in Australia and overseas access the real opportunity of buying and owning their own home.”
The agreement also sees HomeInvest providing loan guarantee services for $50 and $100 loan amounts, with up to 20,000 property loan repayments a year.
“HomeInvest has been able to take a real-time look at what’s happening in the housing sector, and work with its partners to provide solutions to these issues,” Mr Morrison said.
The deal is the latest in a series of initiatives to assist people with mortgage debt in Australia.
The Government announced in March that it will set up a new bank account for people with debt, which it will provide through the new HomeInvest partnership.
The Department of Housing, Urban Development and Planning has also announced it will launch a new online portal to help Australians with mortgage finance with online banking, with a range of other services.