APRA updates guidance on residential mortgage lending

APRA updates guidance on residential mortgage lending
Staff reporterFebruary 23, 2017

The Australian Prudential Regulation Authority (APRA) has updated its expectations for sound residential mortgage lending practices for authorised deposit-taking institutions (ADIs) following consultation with industry and other stakeholders.

APRA released for consultation a revised draft of Prudential Practice Guide APG 223 Residential Mortgage Lending in October 2016 to incorporate measures previously announced by APRA in 2014 or communicated to ADIs since that time.

The revisions to APG 223 are designed to ensure that the sound lending practices that have been implemented across the industry since late 2014 are maintained and reinforced.

As a result of the consultation, APRA has made a small number of refinements to the prudential practice guide, which are explained in a letter to ADIs.

APRA does not expect these refinements to result in material changes to existing lending practices across the industry as a whole.

APRA is continuing to maintain its close monitoring and supervision of residential mortgage lending practices, including growth in investor lending, as part of its broader mandate to build resilience in the financial sector and promote financial system stability.

Editor's Picks

Why Danby Lane in Nundah is more than just a project for Gardner Vaughan Group: Five minutes with Sam Gardner
James Place to bring new life to Fortitude Valley’s James Street precinct
Tian An quickly sells 25% of apartments in North Village, Auburn, following successful launch
Infrastructure drives new momentum in Melbourne’s Sunshine Precinct
Gardner Vaughan plans Eden Caloundra launch after $19m site purchase