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

Specialist lender Residence Affordability Options (HAS) has dedicated to ship 1,000 properties 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 by way of a shared fairness resolution, is within the technique of increasing its funding and product choices to achieve its purpose.

“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 shoppers with the instruments and steerage they should construct robust financial savings habits and obtain monetary independence sooner by way of collaboration with brokers.”

How HAS works

Established in 2016, Residence Affordability Options mentioned it has constructed a robust basis over the previous eight years that allowed it to innovate and develop, with no defaults so far. 

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

“Now, we’re able to take the following step in our journey by delivering 1,000 properties – 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 shoppers an opportunity to ease into the property market. Purchasers take pleasure in a hard and fast 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, guaranteeing shoppers 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 throughout the facility, decreasing upfront prices.

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

Working with lenders and brokers

By working with main trade 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 increase within the close to future.

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

With the strategy catering to younger professionals, households, divorcees, migrants, and buyers 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 shoppers,” Comino mentioned. “Dealer success secures your shoppers’ entry into the property market with out LMI, guaranteeing decrease repayments and minimised threat for buyers.”

Whereas the federal government has pledged to construct 1.2 million properties over a five-year interval, the truth on the bottom is that the whole 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 a substitute of constructing properties ourselves, we discover properties by way of customers, enabling an instantaneous rollover,” she mentioned.

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