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The housing market needs innovative measures to help first home buyers rather than misguided checks on investor lending, according to one brokerage.
LJ Hooker Home Loans said mooted plans to cool the investor market by making investor loans more expensive would have "minimal impact" on demand.
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Product and marketing manager Jeff Chapman told The Adviser that the proposed changes ignore the fact that the investment market is being driven by overseas buyers and yield returns.
Investment loans would also remain cheap even if they attracted a premium of 20 basis points, because interest rates are at historical lows, Mr Chapman added.
Mr Chapman also echoed a recent comment from Mortgage Choice chief executive Michael Russell, who said intervention is unnecessary because the market is correcting itself.
"Any regulatory measures introduced now to try and curb property investment may be after the fact given the cooling is already happening," Mr Chapman said.
Mr Chapman said the authorities should turn their attention from investors to first home buyers.
"We would like to see measures taken to help support lenders in manufacturing products or credit policies that can help first home buyers enter the market," he said.
"This could include education on what products are already in existence, whereby parents can assist their children by utilising the equity in their homes.
"Any measure that may support parents in this area could help balance the level of owner-occupiers and investors in the market."
Mr Chapman's comments come after some brokers recently spoke out against "artificial intervention" in the housing market.
However, others have said that smart brokers and investors could ironically benefit from plans to make investor loans more expensive.
[Related: LJ Hooker goes retail with new high street brokerages]
