Powered by MOMENTUM MEDIA
subscribe to our newsletter

APRA’s investor crackdown: will it stick this time?

Regulatory measures to curb investor lending appear to be working, with the latest housing finance figures showing a further fall in April.

The Australian Bureau of Statistics’ Housing Finance Data shows there was a 2.3 per cent drop in investor lending in April, according to the seasonally adjusted figures.

RateCity’s money editor, Sally Tindall, said that while APRA would be pleased with the initial outcome, the government regulator was looking for long-term results.

“There’s good chance we’ll see a further reduction in investor activity in the coming months however the real question is whether it will stick,” she said.

“Last time APRA cracked down on investor lending we saw an immediate drop in the figures but the numbers started climbing back up within six months.”

Advertisement
Advertisement

PROMOTED CONTENT


The other key statistic to come out of the ABS data was a sharp reduction in refinancing activity. Mortgage holders made $5.8 billion of refinancing commitments in April – down 4.4 per cent over the month and 17.8 per cent over the year.

“We saw a rise in March when the banks all hiked their rates out of cycle but the numbers of refinancers have fallen away once again,” Ms Tindall said.

“The average mortgage holder could save over $2,500 a year by switching to one of the lowest lenders on the market and over $70,000 over the life of a 30-year loan,” she said.

“That’s not pocket change we’re talking about.”

[Related: Housing and property a 'big issue' on APRA's agenda]

APRA’s investor crackdown: will it stick this time?
mortgagebusiness

Latest News

The chairman of the financial services regulator has resigned from his position, effective immediately. ...

Refinancing settlements for the first nine months of the calendar year 2020 are up 27 per cent on last year’s volumes, having peaked in Ju...

The Tasmanian-based lender has seen a 43 per cent rise in settlements in the first quarter of the financial year, driven by strong demand fr...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: Victoria’s surprising appetite for new homes

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.