The MFAA has urged the Government to consider implementing an Australian version of the Canadian Mortgage and Housing Corporation – or what has been dubbed an “AussieMac”.
Phil Naylor, chief executive of the MFAA, said the need for securitised sources of funding had never been more important.
“The latest ABS housing finance statistics show that the number of loans originated by wholesale lenders has fallen again... If there are fewer sources of funding available, some lenders and products will be forced out of the market,” he said.
With fewer lenders competition would be threatened, which would result on less downward pressure on interest rates, Mr Naylor said – emphasising the importance of non-bank lenders to the market.
“If the balance of power moves too far back to the big banks again, we will inevitably see rates rise,” he said.
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