APRA remains calm despite housing bubble fears

Font size :
The Australian Prudential and Regulation Authority says it remains calm about Sydney and Melbourne’s property markets, despite concerns raised by the Treasury and the RBA about a housing bubble, reports Fairfax Media.
 
Chairman Wayne Byres on Wednesday said that even if he has the power to use policies that target specific housing markets in Australia, it is not yet time to use them. This power, if used, could prevent bank lending practices from becoming too loose.
 
The financial regulator, however, agrees that there should be more stringent watch over interest rates in banks for credit cards.
 
Byres believes that the warning he gave to Australian banks last year is still having an effect.
 
"They've been co-operative in terms of changing practices. At the time we sent our letter, the growth in investor lending was about 10% but it was accelerating, it was heading towards 11%, 12%, 15%," he was quoted as saying by Sydney Morning Herald.
 
"It's still hovering around 10% [but] we're arguing around the decimal point here, 10.3%, 10.4%, so I think we've had some moderating impact and I suspect we'll have some more moderating impact over the coming months."
 

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan

Mortgage News and Articles

How to tell when a housing market is cooling How to tell when a housing market is cooling

You need to check clearance rates, listings, and the price gap, among other factors Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

Be proactive about getting a better mortgage deal Be proactive about getting a better mortgage deal Apathy could be costing you a considerable amount of money over the lifespan of your loan ... Read more

More mortgage news and articles

Sponsored Links

Sunday, Sep 24, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords