BREAKING NEWS – APRA removes 10% growth restriction on investor loan growth

 1 July 2018 lenders will no longer be required to operate below the 10 per cent investor lending growth benchmark

 Investors will now have improved access to finance post 1 July 2018

APRA chairman Wayne Byres said in a letter announcing the change.

“Since the benchmark was applied in 2014, however, the ADI (Authorised Deposit-taking Institution) industry has taken steps to improve the quality of lending and increase balance sheet resilience,” he continued.

“There has been a clear reduction in higher risk lending, with investor loan growth moderating, interest-only lending declining and high loan-to-valuation lending also markedly lower.

“There have also been improvements in lending policies, increasing the rigour of serviceability assessments for new borrowers. Accompanying this, there has been an uplift in capital resilience, as the industry makes progress towards the ‘unquestionably strong’ targets announced by APRA in mid-2017.”

As such, the investor loan growth has “served its purpose”.

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