Mutuals call for more government help on home ownership

Improving banking competition, mortgage broker reforms and making it easier to save for a deposit could help more Australians achieve their home ownership dream, the Customer Owned Banking Association told the House of Representatives Economics Committee Inquiry into home ownership.

COBA pointed out that around 80 per cent of the customer owned banking sector's residential mortgage lending went to owner occupiers, compared to around 65 per cent for the major banks.
 
However, while record low interest rates make it easier to meet repayments, saving for a home deposit has never been more challenging, the association said in its submission.
 
For this reason COBA called on the Federal government to assist with "a well-designed and well targeted savings vehicle for potential first home buyers", as this could be an effective tool in helping to address one of the most significant barriers they face.

"Deposits are the simplest but most heavily taxed savings vehicle. The tax rate applied to deposits should be lowered to address the inequality and assist FHBs," COBA said.

"COBA is also concerned about the broker market. We believe consumers deserve clearer information so they know who they are dealing with, without having to wade through fine print to uncover ownership and product structures."