Housing
Background
The member raised concerns that average mortgages had increased by $75,000 in one year to reach $735,000, contrary to pre-election promises of cheaper mortgages, leaving some homeowners at risk of negative equity.
Question
The member asked how the government had managed to increase borrowing levels for home buyers while exposing them to financial risks such as negative equity, despite earlier commitments to reduce mortgage costs.
Includes 2 supplementary questions.
Answer from Penny Wong
The minister recalled that the promise of cheaper mortgages was linked to the Help to Buy shared-equity scheme, designed to help workers enter the market without mortgage insurance. She stated that 40,000 Australians had saved up to 40 per cent on home costs through this program. The minister argued that the government had acted to level the playing field for first-home buyers, contrasting this with the previous government's failure to address market exclusion. In response to supplementary questions regarding investor lending and negative equity, the minister cited Reserve Bank of Australia comments stating that negative equity was minimal and declining. She defended tax changes as removing unfair subsidies for investors competing with owner-occupiers.
Summary in reported speech - not a transcript. AI-generated, so check the source.