Home loan figures up despite APRA action
(11 June 2015 – Australia) The latest Australian Bureau of Statistics (ABS) housing finance figures show that home loan approvals rose 1.0 percent in April.
Figures already indicated a surge of 7.1 percent in housing finance figures in March, with new investor lending up 2.6 percent, despite the banking regulator’s attempts from December to slow property investor lending.
The Australian Prudential Regulation Authority (APRA) announced tighter home lending standards, particularly for property investors in December, with an aim to ensure that banks kept growth in residential investment lending below 10 percent.
At the end of May, APRA stepped up its efforts to rein in investor loans, introducing tougher stress tests.
The big four and smaller lenders have also tightened income assessments.
The regulator prefers a 7 percent interest rate floor when deciding whether borrowers can handle future rate rises.
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