Regulators tasked with cracking down on Australian housing investor loans

Discussion in 'Property Market Economics' started by Simon Hampel, 22nd Mar, 2017.

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  1. Simon Hampel

    Simon Hampel Founder Staff Member

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    Crackdown on bank lending through tougher macroprudential policies imminent

    REPORT: A special team of regulators has been tasked with cracking down on Australian housing investor loans

    "Among the measures being considered are as much as halving the annual speed limit on investor lending growth from the current 10 per cent imposed in 2015"

    "Banks will also be required to test the ability of borrowers to repay their loans at interest rates 3 percentage points higher than today, up from the current requirement of 2 percentage points."

    "[Citibank banking analyst] Mr Williams believes that higher levels of stamp duty, penalties for flipping properties within certain time frames and tighter loan-to-valuation requirements are measures that are less likely to be introduced."
     
    Simon Hampel, 22nd Mar, 2017
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