HOUSE BUYING – GOVERNMENT POLICY – AUSTRALIA

First home buyer risk riles banks

roymorgansocial Leave a comment

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

Coalition rejects interest rate risk on loan plan

roymorgansocial Leave a comment

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

PM’s late pitch for young voters

roymorgansocial Leave a comment

Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 13-May-19

Prime Minister Scott Morrison has used the Coalition’s official election campaign launch to announce a First Home Loan Deposit Scheme. The $500m scheme will allow Australians to buy their first home with a deposit of just five per cent rather than 20 per cent, with the government to underwrite the balance via its National Housing Finance & Investment Corporation. Labor responded by announcing that it will match the policy while pressing ahead with its negative gearing reforms. Morrison also committed to providing $4bn worth of federal funding for the East West road link in Melbourne.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, AUSTRALIA. NATIONAL HOUSING FINANCE AND INVESTMENT CORPORATION