Fink’s plan for fixed-rate home loans stinks for banks
Readers’ letters on Larry Fink’s push for 30-year fixed-rate home loans in Australia; Peter Dutton’s stance on power investment; Labor’s Medicare plan; the global responsibility of Donald Trump, Vladimir Putin and Xi Jinping; social cohesion.
Larry Fink suggests Australia could do with non-recourse 30-year home loans with fixed interest rates (“Fink plans revolution for private markets”). Two-thirds of the “big four” Aussie banks’ market capitalisation is derived from their residential home loan “book”. These home loans are on their balance sheets – banks derive the profit from the home loan over the life of the home loan.
Larry Fink’s push for 30-year fixed-rate loans in Australia might hurt the banks. David Rowe
