Median residential property prices continue to increase across most capital city markets, despite recent sustained increases in official interest rates.

As property prices increase, the equity risk profile decreases for most lending institutions.

However, the minimum deposit required for a residential home loan remains 20 per cent, without Lenders Mortgage Insurance. 

Retail interest rate margins remain around 2 per cent above the cash-rate, meaning major banks continue to generate significant profits.

Many low-income earners and first homebuyers cannot save sufficient funds for a deposit without financial support from family or friends.    

We ask the questions: should deposits for first home buyers be set at a more modest rate of say 5 per cent, with banks paying Lenders Mortgage Insurance?  Should a discounted interest rate be offered, like 1 per cent over the cash rate for the first 5 years? Should first home mortgages be tax deductible?

Founder and Executive Chairman Brian Haratsis will be discussing this and other Big Ideas at some upcoming industry events in May 2024.

Find out more here.