Can Australians Get a Government-Backed 30-Year Fixed Mortgage? One Nation's "People's Bank" Proposal Explained

Key takeaway: One Nation has proposed a government-funded "people's bank" offering government-backed 30-year fixed-rate mortgages (The Adviser, 15 July 2026). It is a policy proposal, not legislation — Australian borrowers today still choose between variable rates and fixed terms of typically one to five years.

What has One Nation actually proposed?

The proposal is a minor-party policy platform with no legislated pathway. According to The Adviser (15 July 2026), One Nation unveiled a plan for a government-funded "people's bank" that would write government-backed 30-year fixed-rate home loans, presented as part of a broader overhaul of Australia's housing finance system. No government support or start date has been announced, so borrowers should treat it as part of the housing-affordability debate rather than something to plan a purchase or refinance around.

The idea lands in a distinctive rate environment: the RBA left the cash rate target at 4.35 per cent at its June 2026 meeting, annual CPI inflation was 4.0 per cent in May 2026 (ABS), and the next rate decision falls on 11 August 2026.

Why doesn't Australia already have 30-year fixed mortgages?

The short answer is funding structure. US-style 30-year fixed loans depend on government-sponsored enterprises that buy and securitise mortgages, shifting interest-rate risk to bond investors. Australia has no equivalent, so local lenders fund home loans from deposits and shorter-term wholesale markets — hedging a 30-year fixed rate is prohibitively expensive for any individual lender.

That is why Australian fixed terms typically run one to five years before reverting to variable. Fixed loans can also carry substantial break costs if you sell or refinance early; a 30-year commitment would magnify that issue unless the government — meaning taxpayers — absorbed the interest-rate risk, which is exactly what One Nation's model implies.

"In Australia, rate certainty is not a product you buy once for 30 years — it is a strategy you revisit every few years."

What can borrowers do today for rate certainty?

Practical options already exist without waiting for policy debates to resolve. Borrowers can fix for one to five years, split a loan between fixed and variable portions, or schedule regular refinancing reviews so the loan structure keeps pace with the rate cycle. Non-bank lenders are worth including in any comparison, as they often price and structure loans differently from the major banks.

What this means for borrowers: MPFG's view

For self-employed borrowers or anyone recently declined by a major bank, the practical question is not "when will a people's bank arrive" but "which lender can approve my loan on workable terms today". Non-bank lenders such as MPFG Capital assess income more flexibly — including alt doc verification for self-employed applicants — and offer refinancing up to $7.5 million through MPFG Easy Refi. With the RBA's 11 August decision approaching, reviewing your loan structure now costs nothing. Explore the full MPFG product range or talk to our bilingual team.

FAQ

Does Australia have 30-year fixed-rate home loans?

Thirty-year loan terms are standard in Australia, but the interest rate is typically only fixed for one to five years before reverting to variable. The government-backed 30-year fixed product One Nation proposes is a policy idea, not a loan currently available in the market.

Would a government-backed "people's bank" lower mortgage rates?

Not necessarily. The final rate would depend on the government's own funding costs and on taxpayers bearing decades of interest-rate risk. As of July 2026 the proposal has no published costings and no legislative pathway (The Adviser, July 2026).

What are my options if I want repayment certainty right now?

Consider fixing part of your loan, using a split fixed-and-variable structure, or locking in a suitable fixed term when refinancing. A broker or non-bank lender can compare structures against your circumstances. All lending is subject to credit assessment.

This article is general information only and does not constitute financial or credit advice. All applications are subject to credit assessment by MPFG Capital (ACL 553698).