Home Loan Guarantee
The Federal Government followed many developed nations by introducing a home loan guarantee during the global financial crisis. The home loan guarantee was set up to protect borrowers from the worry of their lender collapsing by the government financially backing the financial institution if it was in trouble. It also helped lenders acquire funding because offshore investment vehicles could rely on the assurance of the home loan guarantee. This helped prevent an increase in interest rates and bigger restrictions on lending criteria. The home loan guarantee is a temporary support set up to be in place only while the worlda??s financial markets are volatile.
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