Coalition rejects interest rate risk on loan plan

Original article by Matthew Cranston
The Australian Financial Review – Page: 9 : 15-May-19

Finance Minister Mathias Cormann has downplayed concerns that the Coalition’s First Home Loan Deposit Scheme could prompt banks to impose higher interest rates on participants in the scheme. He is confident that banks will want to be involved in the scheme and will not charge higher interest rates, arguing that banks’ exposure will still be restricted to a maximum loan to value ratio of 80 per cent. The New Zealand government introduced a similar scheme in 2003.

CORPORATES
AUSTRALIA. DEPT OF FINANCE, WESTPAC BANKING CORPORATION – ASX WBC, KEYSTART HOME LOANS, NEW ZEALAND. MINISTRY OF HOUSING, HOUSING NEW ZEALAND CORPORATION

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