House price, mortgage debt surge no cause for 'immediate alarm', says APRA
3 years, 8 months ago

House price, mortgage debt surge no cause for 'immediate alarm', says APRA

ABC  

The financial system regulator has reminded Australians that it does not have a mandate to target house prices, or housing affordability. Key points: The bank regulator said it does not target housing prices with its home lending policies APRA's chair Wayne Byres said the current rise in home prices and lending is not alarming, but the regulator is not complacent If lending becomes more risky, APRA may intervene with fresh rules for banks Instead, it said it is focused on the stability of the financial system, and house prices are simply a "risk factor." Regulator is alert to rising household debt Mr Byres said he was prepared to use regulatory tools to slow the growth of household debt, or to tighten lending standards, if risks materialised this year. "We are alert to signs that very low interest rates and rising housing prices create a dynamic in which households seek to take on even higher debt levels, and that banks searching for credit growth seek to accommodate that demand through greater risk taking," he said. Mr Byres said the debate about house prices seemed to have shifted, in recent weeks, "from whether APRA will do something, to when we will do it."

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History of this topic

APRA chair Wayne Byres says falling house prices are 'no bad thing'
2 years, 2 months ago

APRA chair Wayne Byres says falling house prices are 'no bad thing'

ABC  

The outgoing boss of Australia's banking regulator has denied responsibility for the latest housing boom and bust, while adding that the price falls may be good for the nation. Key points: Wayne Byres is standing down as APRA chair on October 30, but his replacement has not been announced yet Mr Byres says APRA's role is to protect banks from …

APRA warned Albanese government about 'heightened' housing risks as interest rates rise
2 years, 4 months ago

APRA warned Albanese government about 'heightened' housing risks as interest rates rise

ABC  

The banking regulator warned the incoming Albanese government that it would face "heightened" risks in the housing market as interest rates rise. Key points: The banking, insurance and superannuation regulator prepared an incoming-government brief in May The document warned the Albanese government that housing market risks were "heightened" due to rising rates APRA said banks were well placed to weather …

Banks crack down on high debt-to-income home loans as regulator APRA comes knocking
2 years, 6 months ago

Banks crack down on high debt-to-income home loans as regulator APRA comes knocking

ABC  

Two of Australia's biggest banks have moved to curb high-risk home lending, as the regulator revealed it has been warning some institutions to cut back on risky loans. Key points: APRA's boss revealed the regulator has contacted some banks about a surge in risky high debt-to-income loans ANZ and NAB have recently imposed new, lower caps on such loans The …

Australian house prices 'rolling over' as rising interest rates, affordability bite, warns ANZ
3 years, 1 month ago

Australian house prices 'rolling over' as rising interest rates, affordability bite, warns ANZ

ABC  

ANZ bank has tipped house price falls the year after next as the pandemic boom in Australian housing comes to an end. Key points: ANZ tips housing prices will rise 21 per cent this year, 6 per cent next and fall 4 per cent in 2023 The bank says more homes on the market for sale, reduced affordability and rising …

APRA's mortgage crackdown catches out hopeful home buyers
3 years, 2 months ago

APRA's mortgage crackdown catches out hopeful home buyers

ABC  

When Bronte Oldfield and Phil Grooby heard that it will soon become harder for some borrowers to get a mortgage, they did some quick calculations. Key points: Regulator reduces the maximum amount that households can borrow to buy a property The move has caught some first home buyers out Residential real estate values have jumped 20.3 per cent in the …

APRA tightens home loan rules on the same day New Zealand's Reserve Bank lifts interest rates
3 years, 2 months ago

APRA tightens home loan rules on the same day New Zealand's Reserve Bank lifts interest rates

ABC  

The banking regulator has announced tougher serviceability tests for home loans, which will make it harder for some borrowers to get a mortgage, on the same day the Reserve Bank of New Zealand starts lifting its benchmark interest rate. Key points: Banks will have to apply a slightly tougher test on a borrower's ability to afford mortgage repayments APRA is …

Home loan crackdown appears imminent as Treasurer, regulators discuss house price surge
3 years, 2 months ago

Home loan crackdown appears imminent as Treasurer, regulators discuss house price surge

ABC  

The Treasurer has given the strongest indication yet that a home loan crackdown is looming, confirming that surging house prices were a key topic of discussion at a regulators' meeting on Friday. Key points: Treasurer Josh Frydenberg says the Council of Financial Regulators discussed the recent surge in home prices last week Analysts expect the council to announce new home …

House prices rising at fastest pace in 32 years as listings can't keep up with demand: CoreLogic
3 years, 8 months ago

House prices rising at fastest pace in 32 years as listings can't keep up with demand: CoreLogic

ABC  

Australian house prices are rising at the fastest pace in 32 years, as the Sydney and Melbourne property markets stage a full recovery from the short-lived COVID downturn. Key points: Home values in Sydney, Melbourne, Hobart, Canberra and Brisbane are at record highs Capital city price rises outpaced regional markets for the first time in a year Some economists expect …

Fears of a debt disaster as property market runs hot and changes to safe lending laws loom
3 years, 9 months ago

Fears of a debt disaster as property market runs hot and changes to safe lending laws loom

ABC  

Jacob had big dreams before the global financial crisis. The Greens said the bill was "designed to let the banks get on with writing loans as big as they possibly can, whether it's good for people or not". "The banks have reduced what they were assessing loans at — in 2018 it was closer to 8 per cent, but now …

House prices record sharpest increase since 2003, CoreLogic says
3 years, 9 months ago

House prices record sharpest increase since 2003, CoreLogic says

ABC  

Australian house prices have posted their sharpest monthly increase since August 2003, with analysts at CoreLogic saying the market is now entrenched in one of its strongest growth phases on record. Key points: Capital city home prices rose 2 per cent and regional prices rose 2.1 per cent in February Sydney and Hobart led the capital city rises, up 2.5 …

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