HAS tackles housing affordability disaster, plans to ship 1,000 houses

Specialist lender House Affordability Options (HAS) has dedicated to ship 1,000 houses as a part of its strategy to tackling the housing affordability disaster.

The corporate, which goals to offer low-deposit debtors with the flexibility to get into the property market via a shared fairness answer, is within the technique of increasing its funding and product choices to succeed in its aim.

“The housing affordability disaster is a fancy problem that requires extra than simply entry to loans,” mentioned HAS CEO Beth Comino (pictured above).

“Our strategy goes past conventional lending by addressing the foundation causes, offering purchasers with the instruments and steering they should construct robust financial savings habits and obtain monetary independence sooner via collaboration with brokers.”

How HAS works

Established in 2016, House Affordability Options mentioned it has constructed a powerful basis over the previous eight years that allowed it to innovate and develop, with no defaults up to now. 

Comino mentioned the corporate’s observe report speaks to the flexibility to assist purchasers navigate the complexities of homeownership. 

“Now, we’re able to take the subsequent step in our journey by delivering 1,000 houses – a transparent demonstration of our confidence in our product and our dedication to creating an actual distinction within the housing market.”

How the HAS mortgage works is that HAS offers a funding line of 17.5% LVR alongside an 80% LVR mortgage from a primary lender, providing purchasers an opportunity to ease into the property market. Shoppers get pleasure from a set 3.25% interest-only charge for 5 years with HAS, matching the primary lender’s mortgage time period.

The safety held is a second mortgage, making certain purchasers retain possession of the property. They continue to be eligible for presidency grants, which may contribute to their 2.5% deposit. All HAS charges and the primary three years of repayments are included inside the facility, decreasing upfront prices.

Eligibility requires servicing each mortgages, a 2.5% deposit plus prices, and investor help. Shoppers can refinance and exit after three years.

Working with lenders and brokers

By working with main business lenders resembling Pepper Cash, Liberty Monetary, AXIS Lending, Mortgage Ezy and First Federal, HAS hopes to construct out its new strategy to homeownership that’s each sustainable and impactful.

Moreover, the lender is partnering with a Actual Property Funding Belief (REIT) to fund its present program however hopes to broaden within the close to future.

“Our proprietary construction requires far much less capital to realize important housing outcomes. With an funding of $200-250 million, we are able to fund 1,000 houses, making our mannequin extremely environment friendly and scalable,” Comino mentioned.

With the strategy catering to younger professionals, households, divorcees, migrants, and traders alike, all searching for to beat the hurdle of a hefty deposit, HAS mentioned it encourages collaboration with mortgage brokers.

The lender additionally has a dealer accreditation program, which grants entry to coaching packs, newsletters, and different assets.

“HAS acts as a lead magnet for purchasers,” Comino mentioned. “Dealer success secures your purchasers’ entry into the property market with out LMI, making certain decrease repayments and minimised danger for traders.”

Whereas the federal government has pledged to construct 1.2 million houses over a five-year interval, the fact on the bottom is that the full determine of recent housing is more likely to be considerably lower than that.

Comino mentioned the lender recognises its position as a complementary participant within the housing market.

“As an alternative of constructing houses ourselves, we discover properties via shoppers, enabling a direct rollover,” she mentioned.

“By favouring new properties, we encourage shoppers to work with small and medium-sized builders, supporting native building. With our proprietary mannequin, we’re absolutely arrange and able to go.”