Pursuits
Australia Regulator Tightens Loan Curbs to Cool Home Prices
- Banks to limit interest-only loans to 30% of new mortgages
- Lenders to place ‘strict’ limits on LVRs of more than 80%
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Australia’s banking regulator has further tightened lending restrictions amid concern runaway home-price growth may stoke a housing bubble.
Under the new curbs, home lenders will have to restrict interest-only loans to 30 percent of total new residential mortgages, the Australian Prudential Regulation Authority said in a statement Friday.