APRA to remove banks’ interest-only lending restrictions
Great news as Kevin and myself have been discussing over this year, that these ‘restrictions’ on our banks/property markets were bound to lift and this will provide great positive support for our Property Markets!
ABC News reported that financial regulator will lift restrictions on interest-only residential lending from January 1 in an attempt to stabilise Australia’s ailing housing market.
The Australian Prudential Regulation Authority (APRA) imposed the restrictions in March 2017 to force lenders to limit new interest-only lending to 30 per cent of home loans that they issue.
It is the second lending restriction APRA has relaxed this year.
In April, the regulator removed a “speed limit” that it had imposed on lenders since 2014, requiring them to keep investor credit growth below 10 per cent each year.
“APRA’s lending benchmarks on investor and interest-only lending were always intended to be temporary,” APRA chairman Wayne Byres said.
“Both have now served their purpose of moderating higher-risk lending and supporting a gradual strengthening of lending standards across the industry over a number of years.”
Remember Property Club has access to great interest only loan options for existing and new borrowers so be sure to keep in contact with your Property Mentor and email@example.com for further information on this!
It has been a pleasure keeping you up-to-date on all things property related this year – please have a safe break, enjoy time off if you are having it and catch you in the New Year!
Property Club being the leaders in Wealth Creation through property for 20+ years now, with over 20,000+ properties settled by Club members is in the enviable position of being best placed to assist YOU to have a retirement avoiding the pension!
Contact your Property Mentor for guidance and assistance on the best deals we have at the moment and let us show you how to avoid the pension!
Have a great weekend and catch you next week!