RBA says home loan scheme does not heighten risks to markets
Bullock says government’s mortgage programme will not pose additional hazards to financial institutions
The head of Australia’s central bank has said a government policy that allows first-time homebuyers to obtain mortgages with 5% deposits does not pose additional risks to financial institutions.
Speaking at a hearing on October 10 in the senate (upper house of parliament), Reserve Bank of Australia governor Michelle Bullock admitted that loan-to-value (LTV) ratios more generally could be a source of risk for Australian financial markets. However, when asked if allowing borrowers to secure home
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