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Legislative Assembly for the ACT: 1996 Week 11 Hansard (24 September) . . Page.. 3295 ..

MR STEFANIAK (continuing):

As Ms Tucker may be aware, existing market conditions confirm that housing affordability is at its highest for 10 years. Low interest rates persist. There is an oversupply of properties and we have witnessed also the entry of non-bank mortgage originators into the ACT. This all makes for a very competitive buyers market, with lenders aggressively competing for clients. I was listening to the radio - it was the ABC, of all things - one or two days ago and I heard that there was another new lender in the market which had conditions which were very similar to some of the conditions under the home lending program in terms of tenants who suddenly went out of work. There were unemployment provisions and conditions. I think one of the banks was doing that. So it is a very competitive market.

The review will address issues related to the levels of client assistance in the present economic climate and also the impact on HomeBuyer of the recently announced interest rate reductions from 10.5 to 9.25 per cent, or even less by the major banks, for their standard variable interest rate loans. No new loan applications are being accepted for the duration of the review. All the applications that were in the system prior to the announcement of the review have been assessed and, where eligible, approved. Of course, the Government is continuing to closely monitor the loans portfolio. The Government will determine future directions regarding the provision of home purchase assistance on completion of the review. Ms Tucker, I have no doubt that you will listen most intently to the Chief Minister when she brings down the budget, because there is a great good news story for low- to medium-income earners which not only will assist people into home purchase but also should do something to assist waiting lists.

MS TUCKER: I do not know whether the good news is what was referred to in the Canberra Times last week, but could the Minister assure the Assembly that the $50m loans scheme said to involve loans of $5,000 to 500 tenants, which was forecast in the Canberra Times this week, will not be introduced at the expense of the ACT Housing home purchase assistance scheme or its
components?

MR STEFANIAK: They are different schemes, Ms Tucker. As I indicated earlier, this one is still being looked at by the consultant whose job it is to do that. There are leaks and there are leaks, and that one, I think, was a little way off. There are a few inaccuracies there. I do not want to take the Chief Minister's thunder away from her. You will hear it all very soon. Believe me, I think you will be very impressed with this scheme. I will not tell you too much about it. I do not want to preview the budget. It is a very good scheme. I will give you one little hint, though. The figure of 500 people is quite accurate, so I think you will be impressed with it.

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