The following is a submission to the Senate Inquiry into The Worsening Rental Crisis in Australia.
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This submission addresses the term of reference,
“actions that governments can take to reduce rents or limit rent rises”
The submission outlines a vision that only governments can realise with the cooperation and leadership of the Reserve Bank.
A Vision
The Reserve Bank, in cooperation with the Federal Government, Treasury, ASIC, APRA, and the ATO, can persuade Banks to increase the financial productivity of home loans. Financial productivity means it costs less to repay a loan with a given interest rate. The savings from the productivity gain is given to the borrower, allowing lending Banks to send the following notice to home loan borrowers without dropping the Bank’s immediate profitability.
Notice to Home Loan Borrowers