The banking regulator is acting to quell the growing financial risks of surging house prices, by forcing banks to be more conservative when assessing how much new customers can borrow.
APRA said the impact would be “fairly modest,” however, and increasing the “serviceability buffer” by 0.5 percentage points would cut a typical customer’s borrowing capacity by about 5 per cent. That would mean a customer’s borrowing capacity that was previously $500,000 would fall to $475,000. APRA said the change would affect all new customers, but it was likely to have a larger impact on property investors, who tended to be more leveraged.It said first home buyers were generally less likely to borrow a high multiple of their income because their borrowing capacity was more constrained by the size of their deposit.
How about stopping foreign buyers as well.
ever consider that prices of house and land and cost of living is now astronomical compared to wages?
The house price is not surging because of local buyers, the locals are only trying to keep up with the CCP representatives in Australia who are buying our freehold with cash.
Now? Now, they're worried?
Still won't stop international buyers which are a big part of the problem however will impact first home buyers
New loans only for the Vaccinated!
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Didn’t we have a banking Royal Commission JoshFrydenberg
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APRA tightens home loan standards for new customers as risks growThe banking regulator is acting to quell the growing financial risks of surging house prices, by forcing banks to be more conservative when assessing how much new customers can borrow. | clancyyeates clancyyeates Is this one of those clickbait RWNJ things where you sent a Mouthpiece out to only get the story you want to put out or have you actually talked to relevant experts in their fields and done the research. Not easy to tell these days. You are now like Toilet paper. clancyyeates Its almost impossible for younger people to get into the market clancyyeates As if it isnt hard enough especially considering the Expenses fiasco we are already dealing with.
Source: theage - 🏆 8. / 77 Read more »
APRA tightens home loan rules, raises interest rate benchmarkThe banking regulator announces tougher serviceability tests for home loans, which will make it harder for some borrowers to get a mortgage. Find a way to target those going for their second, third, fourth, houses, with mortgages. We NEED to return to promoting young people as home owners. Stop allowing mortgage interest to be deducted from salaries and wages income.. 'Members noted that a number of factors are expected to constrain house prices over the medium term. These include... slower population growth, changes to tax settings, and tighter bank lending rules...' If we fix the *demand* issues, we fix the housing crisis. VoteSustainable
Source: abcnews - 🏆 5. / 83 Read more »
APRA tightens home loan standards for new customers as risks growThe banking regulator is acting to quell the growing financial risks of surging house prices, by forcing banks to be more conservative when assessing how much new customers can borrow. | clancyyeates clancyyeates Is this one of those clickbait RWNJ things where you sent a Mouthpiece out to only get the story you want to put out or have you actually talked to relevant experts in their fields and done the research. Not easy to tell these days. You are now like Toilet paper. clancyyeates Its almost impossible for younger people to get into the market clancyyeates As if it isnt hard enough especially considering the Expenses fiasco we are already dealing with.
Source: theage - 🏆 8. / 77 Read more »
APRA tightens home loan rules, raises interest rate benchmarkThe banking regulator announces tougher serviceability tests for home loans, which will make it harder for some borrowers to get a mortgage. Find a way to target those going for their second, third, fourth, houses, with mortgages. We NEED to return to promoting young people as home owners. Stop allowing mortgage interest to be deducted from salaries and wages income.. 'Members noted that a number of factors are expected to constrain house prices over the medium term. These include... slower population growth, changes to tax settings, and tighter bank lending rules...' If we fix the *demand* issues, we fix the housing crisis. VoteSustainable
Source: abcnews - 🏆 5. / 83 Read more »