It now looks like tougher restrictions on Australian property investors will be introduced

It looks like tighter restrictions on Australian property investors may be on the way with the head of Australia’s banking regulator, APRA, telling markets to “watch this space”. Speaking at a regulatory conference in Sydney on Monday, Wayne Byres, chairman of APRA, said that a combination of high and rapidly rising property prices in major cities, record household debt, slow wages growth and strong competitive pressures among lenders was creating an “environment of heightened risk”, according to Bloomberg. “That’s a […]

RBA ready to do more to cut economic risks off housing market

THE Reserve Bank is prepared to do more to slash rampant investor activity in the housing market, its assistant governor has confirmed. Michele Bullock, RBA assistant governor financial system said the “essence of macroprudential policy is that prudential supervisors recognise potential system-wide risks in their supervision of individual institutions and react accordingly”. She said regulators were continuing to monitor ongoing effects of housing risks “and are prepared to do more if needed”. Ms Bullock said three years ago Australian regulators […]

National Australia Bank raises variable, investors’ home loan rates

National Australia Bank will tap the brakes on a resurgent investor market by hiking interest rates on variable home loans for property investors, while also increasing rates for owner occupiers. The bank will lift the variable interest rate on owner occupiers’ loans from 5.25 per cent to 5.32 per cent, and on residential investment home loans from 5.55 per cent to 5.80 per cent, from next Friday. “Clearly the investor market is seeing very strong levels of demand across Australia, […]

Reserve Bank hints at further home lending restriction

The Reserve Bank has flagged throwing more “sand in the gears” of the housing market, as runaway price rises in Sydney and Melbourne renew bubble fears. The most recent home value indices put annual price rises in Sydney above 18 per cent, Canberra at 15 per cent and Melbourne more than 13 per cent. Those price gains are being driven by a surge in property investment, with Bureau of Statistics figures out on Friday showing that new investor lending grew […]

Rate rises in the US won’t force Reserve Bank of Australia’s hand

INTEREST rate rises will be on the minds of many in the world of finance this week, but Australian home buyers should be safe, for now. Economists and analysts believe the US central bank is almost certain to increase its official interest rate when it meets midweek, possibly the first of four rate rises for the world’s largest economy. However, Australia’s Reserve Bank — which left its official rate unchanged at 1.5 per cent last week — is widely expected […]