The prudential regulator has put banks on notice that they must be ready to rein in risky home loans made to highly indebted customers, after new data showed the number of mortgages to borrowers with high debt-to-income ratios eased from record levels following its targeted action last month.
The volume of high debt-to-income mortgages came down from a record of 24.3 per cent in the December quarter, but remains significantly higher than a year ago, when they stood at 18.9 per cent of the total., APRA chairman Wayne Byres said the growth of high debt-to-income borrowing had not been an industry-wide development, but concentrated in just a few banks. ANZ Bank and National Australia Bank last month revised down their maximum debt-to-income ratios from 9 times to 7.
“APRA expects lenders to closely monitor housing lending risks to ensure that aggregate portfolio risks remain within their risk appetite and that standards for new lending remain prudent.
Is this a parody account?