Low mortgage rates vs CGT

The market is at the midst of a tug-of war between falling mortgage rates and policy changes, including tax proposals and the foreign buyer ban, according to the bank’s latest Home Truths report.

Westpac chief economist Dominick Stephens says the battle between the immovable object of falling interest rates and the unstoppable force of tax change is going to intensify.

“Mortgage rates are plunging right now – in a couple of months’ time that will come through as a major stimulus to the housing market.

“But the capital gains tax debate is about to come to a head and the current popularity of the Labour Party is surely convincing people that a capital gains tax is more likely to become reality.