Brokers least favoured channel for First Home Guarantee Scheme

According to the always-on consumer tracker, around 45 per cent of borrowers could correctly describe what the First Home Guarantee Scheme does. Just under a third (31 per cent) said they had never heard of it. The remaining quarter said they had heard of it, but had misconceptions of what it does, with 9 per cent believing it eliminates stamp duty and 7 per cent thinking the government contributes to the purchase price.

Notably, of the 58 per cent of consumers who identified as prospective first home buyers, just over 28 per cent said they would be most likely to use a broker to apply for the scheme.

This is despite more than three-quarters of all mortgages going through the third-party channel.

Instead, 36 per cent of eligible consumers said they would apply for it themselves, while another 36 per cent said they would approach a local bank branch.

The survey findings come despite the broker channel already reporting strong demand and interest in their services as a result of the expansion, with demand particularly strong in higher-priced markets like Sydney and Melbourne.

Industry leaders have highlighted that the removal of income caps, LMI savings, and the ability to buy with a 5 per cent deposit are driving strong momentum and competition, creating what many describe as a “window of opportunity” for buyers.

Commenting on the findings, Michael Johnson, director at Agile Market Intelligence, said that there was an opportunity for better education and communication in this space, particularly as nearly two-thirds (64 per cent) of potential users would want to speak to someone face-to-face to apply for the scheme.

He said: “The channel distribution has important implications for scheme implementation. Financial institutions must ensure consistent knowledge and processing capabilities across all touchpoints, while government education efforts need to support multiple pathways rather than favouring any single approach.”

16% bringing forward home buying intentions

Indeed, the newly expanded Home Guarantee Scheme is proving popular with consumers, according to the research.

Of the 58 per cent of consumers who identified as prospective first home buyers, a quarter said they intended to use the scheme within the next two years, with around 5 per cent planning to do so before the end of 2025.

According to the survey, 16 per cent of first home buyers said they were planning to purchase a property sooner due to the expansion of the scheme. (Treasury estimates suggest the expanded scheme will make 20,000 more people eligible in the first year.)

Overall, consumers said they believed that the expanded First Home Guarantee is a positive policy for Australia, with 56 per cent stating so (20 per cent ‘very positive’, while 36 per cent were ‘somewhat positive’).

One-third of consumers were either unsure or neutral about the policy, while 14 per cent of consumers either felt ‘somewhat’ or ‘very’ negative towards the scheme.

“The strong positive sentiment spans beyond just eligible first-home buyers, indicating the policy resonates with broader public expectations about government intervention in housing affordability challenges,” Johnson said.

You can find out more about what consumers think about the expanded Home Guarantee Scheme - and what the new scheme entails - in the What's Making Headlines podcast on The Adviser Podcast Network and on The Adviser's YouTube channel. Or, you can watch the video podcast below:

[Related: Brokers braced for action as expanded Home Guarantee Scheme launches]