Government invests $8 billion in mortgages

Government invests $8 billion in mortgages
Treasurer Wayne Swan announced today that the Federal Government will invest a further $8 billion of taxpayers’ money in new residential mortgage-backed securities (RMBS) to support the home lending market.
The government first stepped in to support the RMBS market last year investing an initial $4 billion to boost competition in the mortgage market in September 2008.
“The Government will direct the Australian Office of Financial Management to provide up to a further $8 billion of support to new issuances of high-quality RMBS, depending on market conditions,” Mr Swan said today.
“This investment will provide a major boost to smaller lenders and promote competition in the mortgage market, helping to put downward pressure on borrowing rates over time.”

Treasurer Wayne Swan announced today that the Federal Government will invest a further $8 billion of taxpayers’ money in new residential mortgage-backed securities (RMBS) to support the home lending market.

The government first stepped in to support the RMBS market last year investing an initial $4 billion to boost competition in the mortgage market in September 2008.

“The Government will direct the Australian Office of Financial Management to provide up to a further $8 billion of support to new issuances of high-quality RMBS, depending on market conditions,” Swan said today.

“This investment will provide a major boost to smaller lenders and promote competition in the mortgage market, helping to put downward pressure on borrowing rates over time.”

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