Jetski Loans Australia :: News
SHARE

Share this news item!

Relief for First-Time Home Buyers: Reforming Borrowing Rules

Relief for First-Time Home Buyers: Reforming Borrowing Rules

Relief for First-Time Home Buyers: Reforming Borrowing Rules?w=400
First-time home buyers may soon experience a significant reduction in the obstacles they face when applying for mortgages.
A recent senate inquiry recommends revising the current stringent 3% serviceability buffer, which is deemed too harsh for prospective homeowners.

The inquiry's report is anticipated to propose a total of seven recommendations for the government to evaluate. Among these is a revision of the Australian Prudential Regulation Authority's (APRA) regulations, allowing adjustments to the serviceability buffer based on prevailing interest rates and economic conditions. This adjustment aims to alleviate the difficulty faced by nearly 37.5% of first-time home seekers who, as the Mortgage and Finance Association of Australia notes, struggle to secure financing under existing rules.

The buffer, introduced at a time when Australia's cash rate stood at a mere 0.1%, demands potential buyers demonstrate their ability to manage mortgage repayments at a theoretical interest rate significantly higher than the current average. For instance, with a 4.35% cash rate, the serviceability test requires proof of affordability at a 7.35% interest rate—a requirement that many find unattainable.

Senator Andrew Bragg, the Coalition's home ownership spokesperson, highlighted the need for these reforms. "Our inquiry delved into the factors making an initial mortgage increasingly unattainable for many Australians," stated Senator Bragg. “We engaged with regulatory bodies, banks, and industry experts to identify unnecessary barriers disadvantaging first-time buyers.”

The initial report also underscores the challenges new buyers encounter in saving for a 20% deposit amidst ever-increasing property prices while also meeting the strict 3% buffer criteria. It acknowledges the unfair advantage enjoyed by those who can leverage familial financial support, such as accessing the "bank of mum and dad."

Moreover, the report suggests modifying current capital risk weightings—financial calculations affecting how banks determine necessary mortgage insurance—thereby decreasing the financial burden on borrowers without family support.

Senator Bragg argues that current risk systems unnecessarily burden certain borrowers. “The current practices serve disproportionately to benefit those fortunate enough to have family backing them financially,” he notes. “We need a lending policy that realigns with the ethos of the Australian Dream—making home ownership attainable once more.”

Addressing lender requisites holistically, the recommendation proposes a broader review of APRA's regulatory remit to include the impact these rules have on first-time buyers.

This revised lending framework is imperative to rejuvenating the dreams of many Australians who wish to own their homes but are currently hindered by stringent regulations.

Information for this article was gathered from News Corp Australia's report on the current state of mortgage lending for first-time home buyers.

Published:Thursday, 28th Nov 2024
Source: Paige Estritori

Share this news item:

Finance News

RBA to Continue Interest Rate Cuts Amid High Unemployment RBA to Continue Interest Rate Cuts Amid High Unemployment
08 Jul 2025: Paige Estritori

The Reserve Bank of Australia (RBA) is anticipated to maintain its trajectory of incremental interest rate reductions, according to insights from leading financial analysts at ANZ. Recent data from the ANZ-Indeed Australian Job Ads series revealed a rise from 114.8 in May to 116.9 in June, suggesting a potential rebound in job advertisements after previous declines. Despite a stable unemployment rate and hours-based underutilisation rate since mid-2024, the Australian labour market remains strained. - read more
RBA Poised for Cash Rate Cut Amid Inflationary Trends RBA Poised for Cash Rate Cut Amid Inflationary Trends
07 Jul 2025: Paige Estritori

As the Reserve Bank of Australia (RBA) prepares for its forthcoming monetary policy announcement, economic analysts anticipate a further reduction in the official cash rate by 25 basis points. This prediction, supported by Finder’s RBA Cash Rate Survey, reveals that 88% of participating experts foresee a cut that would lower the interest rate to 3.6%, aligning the decision with the recent decline in both headline and core inflation to the central bank's target range of two to three percent. - read more
Uncovering the Impact of Unsolicited Solar Sales on Consumers Uncovering the Impact of Unsolicited Solar Sales on Consumers
04 Jul 2025: Paige Estritori

In a concerning revelation, Australian retiree Christine Hirchfield shares her ordeal with an unsolicited solar installation that turned into a financial nightmare. Despite her initial enthusiasm for cheaper energy bills and a greener home, the project remains incomplete more than a year later. Consumer groups are now advocating for a nationwide prohibition on deceptive sales practices that target vulnerable consumers like Ms Hirchfield. - read more
Australian Online Retail Sees Continued Growth in May Amidst Nationwide Spending Surge Australian Online Retail Sees Continued Growth in May Amidst Nationwide Spending Surge
03 Jul 2025: Paige Estritori

Australian online retail sales experienced a modest rise in May, as consumers continued to invest in fashion, games, and toys. According to the latest figures from the National Australia Bank, there was a 0.7% increase in online sales for the month, compared to a 1.1% growth in April. Over the past year, Australians have spent approximately $63 billion on online retail purchases. - read more
Pay Boosts and Policy Changes: A Closer Look at Financial Updates for Australian Workers Pay Boosts and Policy Changes: A Closer Look at Financial Updates for Australian Workers
03 Jul 2025: Paige Estritori

The starting days of the new financial year bring significant changes for Australian workers, particularly those on minimum wage. As of Tuesday, the minimum wage will rise by 3.5 per cent, increasing hourly earnings to $24.95, or $948 weekly. This adjustment also affects award wages and comes as a response to rising living costs, outpacing current inflation rates. - read more


Jet Ski Loans Articles

The Top Jet Ski Brands in Australia: Which One Is Right for You? The Top Jet Ski Brands in Australia: Which One Is Right for You?
When it comes to purchasing a jet ski, choosing the right brand is crucial for ensuring a safe and enjoyable experience. There are various jet ski brands available in Australia, each with their unique features and specifications. - read more
Financial Tips for First-Time Jetski Buyers in Australia Financial Tips for First-Time Jetski Buyers in Australia
Buying your first jetski is an exciting venture, offering a unique combination of fun, thrill, and the freedom to explore Australia's beautiful waterways. However, it's crucial to make a well-informed purchase to ensure that your investment complements your lifestyle and financial circumstances. - read more
7 Reasons Why Jet Skis Are The Best Way To Enjoy The Water 7 Reasons Why Jet Skis Are The Best Way To Enjoy The Water
In this article, we'll explore 7 reasons why jet skis are the best way to enjoy the water. From the ability to explore new areas to the thrill of the ride, jet skis offer a unique and exciting experience that everyone should try at least once. So, what are you waiting for? Grab a life jacket and let's get started! - read more
Make a Splash Without Sinking Your Budget: Affordable Jetski Financing Options Make a Splash Without Sinking Your Budget: Affordable Jetski Financing Options
Imagine the splash of water on your face and the adrenaline rush as you glide over waves at exhilarating speeds. The thrill of owning a jetski offers a unique brand of excitement and freedom found only on the open waters. However, before you can make waves, it's essential to navigate the sea of financial considerations that come with purchasing such a prized possession. - read more
Navigating Your Jet Ski Loan Options: Expert Advice for Watersport Enthusiasts Navigating Your Jet Ski Loan Options: Expert Advice for Watersport Enthusiasts
Embarking on the watersport lifestyle can be a thrilling experience, but jet skis, with their cutting-edge features and high-performance capabilities, come with a price tag to match. For many enthusiasts, financing is a practical method to spread out the cost of a jet ski purchase over time, making it more accessible and manageable. - read more
New vs Used Jetski: A Cost-Benefit Analysis of Jetski Ownership New vs Used Jetski: A Cost-Benefit Analysis of Jetski Ownership
Imagine cutting through the sparkling waters, the sun on your skin, and the thrill of speed and spray - this is the exhilarating world of jetski ownership. It's a realm where freedom meets adventure, where weekends transform into adrenaline-fueled escapes. However, the rush of riding the waves isn't without its costs, and savvy enthusiasts know that budgeting for your aquatic escapades is as essential as the lifejacket you wear. It's about balancing passion with practicality. - read more
Jet Ski Maintenance: How to Keep Your Jet Ski Running Smoothly Jet Ski Maintenance: How to Keep Your Jet Ski Running Smoothly
Jet skiing is one of the most exhilarating water sports out there and owning a Jet Ski can be incredibly exciting. However, along with the excitement comes the responsibility of ensuring that your Jet Ski is well-maintained. Jet Ski maintenance is important for many reasons, and in this article, we will explore the reasons behind why it should be a top priority for any Jet Ski owner. - read more
Jetski Essentials: The Safety Must-Haves for Every Aussie Rider Jetski Essentials: The Safety Must-Haves for Every Aussie Rider
Safety on the water is paramount, and as thrilling as jet skiing can be, it is essential to recognize the risks involved and the importance of being well-prepared. When we talk about jetski safety, it isn't just about compliance with laws and regulations—it's about ensuring that every ride is as safe as it is enjoyable. Understanding the importance of safety on the water is the first step to becoming a responsible jetski operator. - read more
7 Reasons Why Jet Skis Are The Best Way To Enjoy The Water 7 Reasons Why Jet Skis Are The Best Way To Enjoy The Water
In this article, we'll explore 7 reasons why jet skis are the best way to enjoy the water. From the ability to explore new areas to the thrill of the ride, jet skis offer a unique and exciting experience that everyone should try at least once. So, what are you waiting for? Grab a life jacket and let's get started! - read more
Navigating Your Jet Ski Loan Options: Expert Advice for Watersport Enthusiasts Navigating Your Jet Ski Loan Options: Expert Advice for Watersport Enthusiasts
Embarking on the watersport lifestyle can be a thrilling experience, but jet skis, with their cutting-edge features and high-performance capabilities, come with a price tag to match. For many enthusiasts, financing is a practical method to spread out the cost of a jet ski purchase over time, making it more accessible and manageable. - read more


START HERE.

Loan Amount:
Postcode:

Knowledgebase
Hard Inquiry:
A credit report check by a lender or other entity as part of the credit approval process, which can lower your credit score.


Quick Links: | Jetski Loan Rates | Jetski Loan Brokers | Jetski Loan Calculators | Jetski Loan Quote