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Coalition to slash mortgage costs by telling APRA to get real Urban Taskforce Australia CEO, Tom Forrest, today said the coalition has committed to effectively direct APRA to reduce the prudential buffer they require the banks to apply when considering loan application repayment capacity. This is a matter that members of the Albanese Government have complained about. They’ve raised the impact of this buffer in parliament but done nothing to fix the problem.
Urban Taskforce Australia has been calling for a reduction of the 3% prudential buffer for well over a year. The coalition will amend the Statement of Expectations for APRA to ensure they focus on access to home ownership when setting these buffers. The Coalition will back these new directions with the Home Guarantee scheme, which effectively acts as an underwrite insurance scheme for the banks.
While this is not the only answer to housing supply and affordability, it will make a real difference. Today’s announcement by the Dutton-led coalition shows an opposition that is prepared to use all the levers of government to ease housing cost pressures for first home buyers. The 3% buffer, on top of the current high interest rates, is making life impossible for first home buyers. It’s time that APRA got real and relaxed this impost. It’s good to see the Coalition take the lead. Treasurer Jim Chalmers should take note.