Extension to the First Home Loan Deposit Scheme
An additional $14 billion in new and accelerated infrastructure projects over the next four years.
The ‘time to buy a dwelling’ index increased 10.6% to its highest level since September 2019.
Making it easier to take out bigger mortgages.
Banks only need to apply a 2.5% serviceability buffer to determine whether customers can afford mortgage repayments (significantly below the 7% minimum interest rate test that mandated 4.5 years ago). This would also cut “red tape” and speed up the borrowing process.
Monetary policy will now be calibrated based on where inflation has been rather than where it is going. Additionally, buying 10-year bonds will predominantly increase competition among the banks.
This implies that further easing is likely on the way, and there will be lower rates for much longer.