APRA gives reprieve to property investment lending
The banking regulator has wound back measures to take the heat out of the property investment sector.
The Australian Prudential Regulation Authority (APRA) has announced it will remove speed limits put in place to cool investor lending, the Sydney Morning Herald has reported.
In 2014, APRA placed a 10% cap on annual growth for property investment lending, but the regulator's chairman, Wayne Byres has said APRA is prepared to remove the cap as lending standards have improved.
"The temporary benchmark on investor loan growth has served its purpose. Lending growth has moderated, standards have been lifted and oversight has improved," Byres said.
However, the Sydney Morning Herald has reported that APRA will not yet lift its 2017 measure to limit new interest-only lending to less than 30% of new home loan approvals.
The regulator said it would continue to closely monitor lending standards. APRA also said it expected banks to put limits on the amount of new lending at "very high" debt-to-income ratios.
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