By Robert Carry
The size of the deposit homebuyers are required to put down when buying a property should be regulated in order to stave off price bubbles, a Reserve Bank of Australia (RBA) official has said.
RBA assistant governor Guy Debelle said yesterday that minimum deposit amounts had been introduced in places such as Hong Kong in a bid to prevent cool rising costs amid spiralling speculation.
"At the moment... Singapore and Hong Kong are concerned about what's going on in property prices; they're changing maximum LVRs," said Debelle yesterday.
If adopted by the government, the move would be a further blow to investors already struggling with tightened credit conditions imposed by financial institutions in the wake of the global financial crisis.
Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker