CBA thinks property prices will grow by 10 per cent this year.
Mr Comyn said about 20 per cent of first home buyers were relying on guarantors to secure their loans with CBA, and "about half of those would be guarantees provided by parents" or family members.Westpac thinks property prices will increase by 10 per cent this year and next year. He said it would be beneficial if governments helped to increase the supply of housing stock by making it easier for people to live in areas outside major metropolitan regions by improving infrastructure in those regions.Mr McEwan said house prices may increase "in excess of 10 per cent" this year.
Andrew Leigh, Labor's Shadow Assistant Minister for Treasury, asked Mr McEwan if NAB was seeing an increase in the number of first home buyers relying on guarantors to secure a home loan.He said only 1 per cent of its mortgages were supported by guarantors.Last month, ANZ's economics team said house prices could grow 17 per cent this year, as first home buyers and investors responded to historically low interest rates and government programs designed to support the property sector.
However, Mr Comyn said if regulators did step in at some stage, they should consider using measures that won't make it harder for first home buyers to enter the market.
Source: Financial Digest (financialdigest.net)