In the same week Australian households were told their mortgage repayments will go up, they have also learnt who the real beneficiaries of government housing policies are and…. it’s not first-home buyers.
As reported in the media, the Housing Minister’s “policy brain” who was pivotal to the creation of Labor’s 5 percent deposit scheme, which drove up house prices in the midst of a housing crisis, is making the move to Commonwealth Bank – one of the big four banks profiting off bigger home loans.
The Greens say the lucrative revolving door is shameful and it’s clear that Labor cares more about the profits of the banks than it does about first-home buyers.
Greens spokesperson for finance, housing and homelessness Senator Barbara Pocock:
“In the midst of a housing crisis, Labor’s 5 percent deposit scheme has driven up house prices. It’s a policy that encourages people to take on more and more debt while they compete with wealthy property investors.
“As millions of Australians now face increased mortgage repayments in a cost of living crisis, many will be left wondering who benefits? The banks do. For every mortgage, the banks make $200,000 profit.
“When the Housing Minister’s adviser takes up a job at an institution that is among the greatest beneficiaries of Labor’s policy, what are mortgage holders and first-home buyers supposed to think?
“This is a blatant example of the endless rewards of the lucrative revolving door.
“Australians are fed up with the jobs-for-the-mates mentality that’s plagued successive governments. This is why the Greens have always supported strengthening lobbying oversight by extending the ban on former ministers’ lobbying from 18 months to five years and applying it to senior staff.
“Treasury’s own modelling said house prices would go up under the 5 percent deposit scheme. Borrowing 95% of a mortgage when homes are eight times the average household income is a recipe for financial stress, not stability. It’s clear that Labor and its advisors care more about banks than it does about first-home buyers and making housing affordable.
“Without tackling the root causes of the housing crisis, which is the tax breaks for wealthy property hoarders, house prices will continue to spike, and banks will continue to rake in the profits.”