Many Australians face losing their homes right now. Here’s how the government should help
That same principle underpins the HomeKeeper program I proposed in The Conversation last year.
- That same principle underpins the HomeKeeper program I proposed in The Conversation last year.
- The idea is to help mortgage-stressed owner-occupiers avoid losing their home.
- If it’s a good idea for companies, why not for responsible and otherwise financially-viable Australians at risk of losing their homes in a cost-of-living crisis?
- Rather, it’s government help through a small equity stake with positive returns for taxpayers when HomeKeeper help is no longer needed.
People need help now
- HomeKeeper would be of most help to lower income families who often don’t have a “Bank of Mum and Dad” to help them “over the hump”, as Albanese puts it, during temporary difficulties.
- ACT Independent Senator David Pocock backed HomeKeeper last week in his additional comments in the Senate Economics Legislation Committee report on the government’s Help To Buy Bill 2023.
- Pocock wants the government’s Help To Buy mechanism amended to enable low- and middle-income earners “facing mortgage repossession and possible homelessness to remain in home ownership” via a HomeKeeper-style program.
- Establishing HomeKeeper is more important than ever because the monetary policy script isn’t following the arc politicians and policymakers planned.
Relying on interest rate relief to arrive isn’t enough
- Yet interest rates in Australia are not falling.
- What’s more, even without further rate increases by the Reserve Bank of Australia (RBA) this year, the average mortgage rate is set to rise anyway according to research by the RBA’s Domestic Markets Department’s Benjamin Ung.
- Nearly a third (31.4%) of mortgaged owner-occupiers are “at risk” of mortgage stress according to the latest Roy Morgan survey.
- The longer it takes, the more damaging to individuals and families, and the more costly it is to governments.
- Albanese is right – sometimes there’s a role for government in providing help to get over that hump.
Chris Wallace is a professor in the University of Canberra's School of Politics Economics & Society, Faculty of Business Government & Law. She has received funding from the Australian Research Council.