First home buyer risk riles banks

Original article by John Kehoe
The Australian Financial Review – Page: 1 & 8 : 11-Nov-19

Major banks are doubtful that the federal government’s scheme to assist first-home buyers will start on its proposed date of 1 January. The scheme, announced during the final days of the May election campaign, will see the government provide up to 10,000 first-home buyers each year with free lenders’ mortgage insurance for people with deposits of as little as five per cent and less than 20 per cent. The big banks want the ability to charge higher interest rates for participants in the scheme, claiming that they will be a greater risk because of the low deposits involved.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

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