In MB’s half-year special report, we noted the following:
Australia’s authorities have moved swiftly to stimulate the market. Moreover, we believe that further policy stimulus is coming down the pipe. The RBA will cut all the way to a 50bps cash rate. APRA may also add more stimulus.
For example, Western Australia’s Housing Minister, Peter Tinley, has been liaising with the Morrison Government on a nation-wide roll-out of Western Australia’s Keystart low-deposit loan scheme, which allows eligible buyers to purchase a home with minimal deposit and without needing lender’s mortgage insurance. Basically, it is a government-backed sub-prime loans scheme designed to suck marginal borrowers into the market.