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APRA should take a more 'sophisticated' approach to curb investor lending

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Australian Broker | 31 Jul 2015, 07:01 AM Agree 0
The head of a national broker group says APRA should have taken a more “sophisticated” approach to curbing investor lending and keeping growth sustainable
  • GC | 31 Jul 2015, 09:26 AM Agree 0
    I doubt APRA know what the word "sophisticated" means. They prefer to act like BIG BROTHER and us a sledge hammer approach. I personally cant see where the problem is with property increases as it's really only isolated to Sydney and Melbourne. The one issue that will stop increases is affordability and this happens with all the time. When prices increase to a point where people fee they cant afford it, they stop buying - then incomes catch up of incomes and prices increase again due to affordability. This is just a cycle that has been happening for over 100 years.
    As far as the banks increasing investment loan rates.....just an excuse to make extra profits.
  • Harold Spencer | 01 Aug 2015, 11:12 AM Agree 0
    I am not sure this is done by APRA. APRA states that it wants banks to limit investor lending the banks then do what they think is necessary to abide by APRA's request. The choice to increase rates on loans already set up is done by the lenders APRA didn't release an edict stating raise rates on all investor or IO loans. I think sometime we as broker's can be quick to jump to the wrong conclusion due to the lack of education around the various institutions that have an input around lending in Australia.
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