Pursuits
Australian Regulators May Increase Lending Curbs Amid Home Boom
- Limits on interest-only loans a ‘tactical response,’ APRA says
- Byres says will review capital banks hold against mortgages
Newly constructed houses stand in the suburb of Putney Hill in Sydney, Australia.
Photographer: Brendon Thorne/BloombergThis article is for subscribers only.
Australian regulators may take further steps to rein in mortgage lending amid growing concern booming home prices pose a risk to the financial system.
Restrictions on interest-only loans announced last week were a “tactical response” to growth in lending to property investors, Australian Prudential Regulation Authority Chairman Wayne Byres said in a speech in Sydney on Wednesday. The regulator “can and will do more, or less, as conditions evolve,” he said.