00:00Some of the main recommendations are really around helping first home buyers get easier
00:08access to finance.
00:10And at the moment, there's something called a mortgage serviceability buffer.
00:14So when you go to a bank and they offer you a variable interest rate, say that variable
00:18interest rate is 6%, the buffer is currently set at 3%.
00:23So the bank will assess you on your ability to repay the loan at 9%.
00:27So that's 6% plus 3%, 9% is the rate they assess you at.
00:32This inquiry is saying that serviceability buffer is too high.
00:36It's stopping first home buyers being able to get a loan.
00:39And so we should reduce that buffer.
00:42Now of course, APRA came out this week and said we should leave the buffer where it is.
00:46The argument that APRA put, and a lot of consumer groups had put to the inquiry, is that the
00:53current buffer is good where it is.
00:56It's there to protect against risk in the system, that is vulnerable Australians taking
01:01on too much debt.
01:03And we know interest rates have risen.
01:04We know that there are a lot of people already in mortgage hardship.
01:08And so their view is that this just increases too much risk in the system and leaves people
01:13more vulnerable to taking on too much debt and potentially then losing their homes.
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