Overview

• The expanded First Home Guarantee is likely to increase the share of high loan‑to‑valuation and high debt‑to‑income borrowing, elevating repayment strain for new buyers.
• Bullock said banks face less exposure because the government backstop replaces mortgage insurance, shifting potential losses to the public purse.
• She denied that the RBA’s pandemic bond‑buying drove house price gains, reiterating that constrained supply is the primary driver.
• The RBA has conducted no analysis on changing capital gains tax concessions, and Bullock declined to say whether such reforms would cool demand.
• PropTrack reported prices up 0.5% month on month and 6.2% year on year; Treasury’s Jenny Wilkinson warned that curbing investor incentives could reduce rental stock.