The managing director of the Finance Brokers Association of Australia (FBAA), who has led the industry’s campaign for a reduction in the mortgage serviceability buffer rate, has backed the Federal Opposition’s commitment to bring the rate down if elected.

Peter White AM has previously labelled the decision by the Australian Prudential and Regulation Authority (APRA) to leave the buffer at 3 per cent as nonsensical, saying it is “preventing thousands of Australians from purchasing a home and forcing thousands more to remain in ‘mortgage prison’ unable to refinance.”

He said the FBAA, as well as speaking publicly about the issue, has advocated for this change directly to both the government and opposition, “and we are pleased to see that our efforts are paying off and progress is being made.”

“This rate is preventing first home buyers from securing a home in the middle of a housing crisis, putting more pressure onto the rental market.”

He echoed today’s comments by Federal Opposition ministers.

“While a 3 per cent buffer was appropriate in the past because interest rates were at an all-time low and were always going to rise significantly, today it is a barrier to home ownership for people who can actually afford the repayments.”

Mr White said he hopes the Federal Government will match this commitment to reform the APRA lending requirements and will bring this up with the government directly.

He also emphasised that reducing the buffer is “not about relaxing lending requirements but about common sense.”

“We have a scenario being played out across Australia right now where people who have been paying their mortgage without default are being prevented from refinancing to a loan with a lower monthly payment.

“The current rate is hurting Australians and this is why the FBAA has been, and will continue to be, the leading voice on this issue.