MFAA says brokers now have "another opportunity to provide valuable guidance" as scheme extends to existing homes
The Mortgage and Finance Association of Australia (MFAA) has flagged the recent expansion of the Nationwide House Energy Rating Scheme (NatHERS) as a significant development for brokers, following the federal government's decision to extend Home Energy Ratings to existing homes.
Previously limited mainly to new builds, the scheme now allows buyers, owners and renovators to obtain a clearer picture of a property's energy performance before purchasing, renovating or refinancing.
Faster assessments, upgraded software and a larger pool of accredited assessors are expected to follow.
"The expansion represents the biggest change to the scheme in its 33-year history," the MFAA said. "For mortgage and finance brokers, the expansion presents another opportunity to provide valuable guidance as clients increasingly seek advice that goes beyond securing a home loan."
Energy performance becoming a bigger factor for buyers
The industry body noted that buyers are placing more weight on the ongoing costs of homeownership rather than purchase price alone. Energy efficiency has become a growing consideration as households look to cut utility bills, improve liveability and fund upgrades that support a property's long-term value.
Under the expanded scheme, homeowners and prospective buyers will have access to more detailed information through an enhanced Home Energy Rating Certificate, which is designed to help them understand where improvements could be made and what upgrades may be worthwhile in future.
The MFAA said this opens the door for brokers to hold wider discussions with clients about financing options for renovations, refinancing, and lending products geared towards energy efficiency upgrades.
A chance to add value beyond the loan
"Mortgage and finance brokers are already trusted advisers who help Australians navigate complex financial decisions throughout the property journey," the MFAA stated.
The association added that a working knowledge of initiatives such as Home Energy Rating would allow brokers to add further context when clients are weighing up the purchase of an established home, a renovation, or a future investment.
With affordability, sustainability and long-term value increasingly front of mind for buyers, the MFAA expects energy efficiency to become a more prominent factor in property decisions generally.
What the MFAA is asking of brokers
The association has asked members to take a number of steps as the scheme rolls out, including:
- Becoming familiar with the Home Energy Rating program and the expanded NatHERS framework
- Understanding how energy ratings could shape client decisions around buying and renovating
- Preparing to discuss finance options suited to eligible energy efficiency upgrades
- Referring clients to official Home Energy Rating resources where relevant
"By continuing to broaden the advice they provide, mortgage and finance brokers can help Australians make more informed property and finance decisions while reinforcing the trusted role they play in helping clients achieve their home ownership goals," the MFAA said.
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