Reduced Investment Financing

The Australian Prudential Regulation Authority’s (APRA) measures were announced March 2017 to curb investor borrowing, limiting the supply of credit into the residential property market. Designed to stem the effects of high household debt, low interest rates and subdued income growth, APRA’s intent was to ensure borrowing practises were in line with a higher risk property market. Measures included limiting interest only (IO) lending, reduced loans with high loan-to-value ratios over 80% and tightened serviceability with interest and income buffers