Don't get me wrong, the home lending market is very juicy with...

Don't get me wrong, the home lending market is very juicy with lovely ROEs, but if it was easy to compete in that space it would be happening already - it is really tough and you can see recently the neobanks who have started, but haven't even got to the point where they could distribute a home lending product. The govt has tried to encourage competition in Aust but given the regulatory framework and high capital requirements even then its hard to get to the point where you can distribute a home lending product with success.

Home lending requires far more capital, far more licensing, far more compliance, far more everything. Running an unsecured book is much more simple. Not only that but having only one funding source like MBS would be a real challenge to run a decent home lending product without being really exposed from a balance sheet and funding perspective; if you could even do it at all.

I like your idea of gap funding and would definitely support this - its a part of market which I think could be carved out given how useless the big banks are at actually assessing credit worthiness on purchase of a property for those who can afford it but need short term liquidity.