APRA to closely monitor home lending in 2016, says chairman Wayne Byres before House

APRA to closely monitor home lending in 2016, says chairman Wayne Byres before House
APRA to closely monitor home lending in 2016, says chairman Wayne Byres before House

The Australian Prudential Regulation Authority's supervision of lending standards for housing will continue in 2016, APRA chairman Wayne Byres said in his opening statement to the House of Representatives Standing Committee on Economics in Canberra.

He said lending for housing continues to grow at a solid 7 pe cent per annum, but owner-occupiers now have a greater proportion of new loans than investors, according to the media release.

"Importantly from our perspective, serviceability assessment standards have improved across the industry, although we still have further work to do to ensure improved lending policies are fully implemented, monitored and enforced," he said.

The APRA had introduced a cap of 10 percent on allowable growth in bank lending on residential investment loans last year, forcing big banks to hit the brakes on loans to property investors. 

The RBA December board minutes had also noted the growth in lending to investors in the housing market appeared to have eased, with a moderation in the pace of growth in housing prices in Sydney and Melbourne over recent months.

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APRA Mortgage Lending

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