Money Finance News APRA to remove banks’ interest-only lending restrictions

APRA to remove banks’ interest-only lending restrictions

APRA has loosened restrictions on lending Photo: AAP
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The financial regulator will lift restrictions on interest-only residential lending, in an attempt to stabilise Australia’s ailing property market.

The Australian Prudential Regulation Authority (APRA) imposed the restrictions in March 2017 to force lenders to limit new interest-only lending to 30 per cent of home loans that they issue.

“APRA’s lending benchmarks on investor and interest-only lending were always intended to be temporary,” APRA chairman Wayne Byres said.

“Both have now served their purpose of moderating higher risk lending and supporting a gradual strengthening of lending standards across the industry over a number of years.”

More to come.

-ABC