Senate Economics Legislation Committee, , 4:10:57 to 4:17:41
Officials provide data on the performance and default rates of the Home Guarantee Scheme.
Topics: Infrastructure, Workplace relations, Government spending
Speakers: Malcolm Roberts, Emma Jarman, Unknown Speaker, Hon Tim Ayres, Scott Langford, Ben Rimmer, Lisa Darmanin
>> I'm going to rotate the call. Um, Senator Roberts,
>> thank you, Chair. Thank you for appearing again today. >> You undertook at the last hearings to answer on notice how many borrowers under your two and 5% deposit guarantee scheme have exited since the program started. That was question on notice 458. That should be a number you have to hand very easily. You haven't answered it in nine weeks since the hearing. Why
So, Senator, I'll ask my colleague, Miss Gorman, has just come to the table if we have that information to hand. Um, and uh um as to the delays, we apologize, but uh that there may have been some delay if we didn't have that information to hand because
>> Thank you,
>> Senator. Sorry, can you repeat exactly what information you're after?
>> You undertook at the last hearings to answer on notice how many borrowers under your 2% and 5% deposit guarantee scheme have exited since the program started. That was question on notice
That have exited. Yes, we do have that Of the 185,000 guarantees that have been issued since the launch of the scheme, 45,837,000 of those have discharged.
>> Okay. Thank you. You told me at the last hearing there were only 11 defaults out of 250,000 guarantees issued. The actual AR's rate on bank loan banks loan books is around 1%. That's 227 times higher than your claimed ar rate of 0.0044%. Do you accept that your number is almost statistically impossible and only appears good because you don't you don't actually track the people who exit the scheme. Once they're gone,
they're gone.
>> You don't track them once.
>> This is this is people who have
>> Don't try and change the topic. I'm asking the question. >> These are people who have bought a home
under the scheme and then and then sold
>> but that that and then moved on to their next home. That that that is the foot on the ladder that the scheme is designed to provide.
>> Minister, at the last hearing you >> that's what it's for. >> At the last hearing you said that people who are facing hardship can't refinance. Do you know that that's false? >> What? What? What do you mean? People who are facing hardship can't refinance is what you said. That's false. >> The people who are facing hardship >> can't that's false. That's what you said.
>> Well, I I don't know what context I said that in. Um you're you're you're moving
Can you update me? You're moving from
one uh proposition demonstrabably not the case.
>> And you're changing my proposition. I'll get on with it,
>> which is that it's a bad outcome.
>> Why are you running from this? >> No, no, no. No. I'm running to this. I'm
This is a good outcome. I'm sorry if you're confused about it. This is a good outcome for young Australians. >> It's a good outcome. >> Can you update me? Buying a home selling a home, buying a new one. Goodcome.
>> Can you update me on your latest percentages for in advance on schedule a rears and hardship?
>> I can do that, Senator. So as at the end of December 0.3% of the portfolio uh was uh in 90day plus aras 0.8% um under hardship arrangements 26% of the portfolio were on schedule repayments and 73% were in advance of their repayment schedule.
>> Thank you. Do you also have the actual numbers each of these percentages >> Could we have them please?
>> Sure. So on schedule was 33,134 in advance 93,14 90 days um in a rears 336 and in hardship 1,000. There is another category there senator just for the completeness if you're adding up to the total number of guarantees in a rears 30 to 90 days. So earlier rears there's another 347. Thank you.
>> And how many total guarantees are are those percentages of >> is it less than the 250,000?
>> So the 250 of which is now um the number that that's the Australian supported under the scheme, but that's um there's 185,000 guarantees we've ever issued, but only 127,000 of those are active in the book at the moment. The rest of those have already discharged out of the scheme.
>> Okay. Thank you,
>> Senator. I I gave evidence earlier in the day that um the.3% 90-day ar rate is better than >> Yeah, I the uh other relevant AR rate.
>> Thank you. I heard that. I also should
they they come in at 5%. uh and that they make repayments that get that that pay the 15% gap uh over time and then they're considered to have exited the scheme. That that's also a
>> Thank you. How many 5% mortgages that you got first time buyers into do you expect to default if interest rates are raised three times this year? >> Your your One Nation colleague asked the
cycle if we if we are entering a cycle I want to know what what would happen with
>> Senator I don't believe we have modeling for that proposition that you're putting
>> Thank you. Last question. Chair. Do you
guarantee provide first home buyers with any warnings about the risk of a 95%
>> I can answer that. >> Yep. >> Uh yes we do, Senator. So as part of the application process, we've got an information guide. That guide clearly outlines what the guarantee is and how the guarantee is there to protect the lender and not the borrower and also outlines um the obligations of the borrower in terms of repayment of the mortgage and that the guarantee um there will be circumstances where the borrower is still liable.
>> Okay. Thank you. Could I have a copy of that on notice, please? >> Thank you, Chair. That's it.
>> Thank you, Senator PCO.