What was the reason given for this reduction? The cynic in me thinks they are trying to stimulate the market - particulary for non-FTBs who may have sold during the boom and are now renting, and also those who want to trade-up / trade-down.
By introducing this, is the desired effect to bring about a bottom for the housing market and therefore eliminate further losses on the banks' balance sheets?
What do people think the impact of this reduction will be?