Property investors targeted by new limits aimed at stopping risky lending
APRA has unveiled new limits on high debt-to-income loans, targeting fast-rising investor lending to curb growing financial risks.
APRA is taking steps to curtail risky lending to property investors, by setting for the first time a lending limit based on debt-to-income ratios. (Image source: Mayam Studio/Shutterstock.com)
Riskier lending as property prices rise and FOMO grips the market has prompted the banking regulator to crack down on lending practices, with property investors in its crosshairs.
The Australian Prudential Regulation Authority (APRA) announced on Thursday (27 November) that it will limit high debt-to-income (DTI) home lending to pre-emptively contain a build-up of housing-related vulnerabilities in the financial system.
APRA Chair John Lonsdale…
