Mortgage Lending Rules Tightened to Rein in Australian Property Market

Mortgage Lending Rules Tightened to Rein in Australian Property Market
An aerial view of suburban houses in Sydney, Australia, on April 22, 2020. Ryan Pierse/Getty Images
Rebecca Zhu
Updated:

The Australian Prudential Regulation Authority (APRA) has announced long-expected changes to home loan lending rules to cool the property market.

In a letter to lenders on Wednesday, APRA said they expect lenders to increase their serviceability buffer, which banks use to assess a borrowers’ ability to repay the loan, from 2.5 percent to 3 percent.