Sydney needs New Zealand’s mortgage rules, says investment strategist

Font size :
Despite recent remarks by the Housing Industry Association that Sydney does not require similar restrictions loan standards as New Zealand, an expert on investment strategy has begged to differ.
 
Shane Oliver, head of investment strategy at AMP Capital Investors Ltd. said Australian regulators need to impose stricter loan standards similar to those in New Zealand to be able to cool Sydney’s strong housing market.
 
“New Zealand’s approach has been lot more direct and tougher, whereas here it’s about having a chat with the banks and expecting changes,” Oliver was quoted as saying by Bloomberg.
 
The National Australia Bank is also seeking means to trim the growth of investor loans to halt the home-buying frenzy.
 
The comments come after the Australian Prudential Regulation Authority (APRA) asked lenders in December to limit investor mortgages to 10% a year as those breaching that level will most likely see higher capital ratios.
 
Oliver also said that Australian regulators should require lenders to cut discount rates and raise down payments for investment properties, apart from being required to hold more capital as well.
 
He argued that “these tools should target Sydney because house prices haven’t surged in some cities and lower rates are needed for other parts of the economy”.
 
“If APRA is right, it should mean house price gains in Sydney should start to moderate but the question is have they done enough?” Oliver said. “There is a lot riding on APRA now.”
 
Starting this month, New Zealand will require investors to provide a 30% down payment to get a mortgage on Auckland property. The country also said it will be more rigorous in enforcing taxation of capital gains on investment properties. New Zealand aims to ensure that non-residents are included in the tax net. 
 

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

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

Friday, Sep 22, 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