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The federal opposition has called on the government to invest up to $500 million to support shared equity loans.
Scott Morrison, opposition spokesperson on housing and local government, told parliament the global crisis was putting the products at risk as lenders struggled to secure funding.
“Lenders like Bendigo and Adelaide Bank may be forced to withdraw shared equity products from the market, denying households important affordability opportunities,” he said, according to The Australian Financial Review.
Phil Naylor, MFAA chief executive, said he supported shared equity products, but he was “just not sure whether it’s appropriate, good policy to have government supporting one product over others,” he told the daily.
Shared equity loans, introduced to the market in early 2007, allow borrowers to purchase property they might not otherwise have been able to afford, with the lender taking up to 40 per cent of the capital gain on its sale in return for funding part of the purchase.
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