US EditionCoalition promises to relax home lending rules, against regulator's urging
- The Coalition promises to relax home lending rules to help more young people buy homes, stating that the current serviceability buffer is too strict, according to Shadow Housing Minister Michael Sukkar.
- Currently, banks must add a 3 percent safety buffer when assessing home loans, a rule raised during the COVID pandemic, which limits borrowing power for many Australians.
- The Coalition plans to change the Australian Prudential Regulatory Authority's mandate, allowing more flexibility in loan approvals and reducing the burden of lenders mortgage insurance.
- Prime Minister Anthony Albanese expressed uncertainty about the Coalition's promises while highlighting his own initiatives for first home buyers.
17 Articles
17 Articles
Dutton Pledges to Lower the Home Loan Borrowing Buffer
Opposition Leader Peter Dutton believes the current mortgage serviceability buffer is too high and would like to lower the current rate. The home loan serviceability buffer is the additional amount banks add to interest rates when assessing whether an Australian can afford a loan. The Coalition revealed plans on April 1 to ask the Australian Prudential Regulation Authority (APRA) to consider lowering this buffer. APRA regulates banks, insurance …
Greens hit out at Coalition's election pledge to relax bank lending laws
The Coalition's election pledge to relax home lending laws for first homebuyers has been labelled a "disaster waiting to happen" by the Greens.Shadow housing minister Michael Sukkar said the Liberal Party would push regulator APRA to lower the mortgage serviceability buffer from its COVID-19 level of three per cent.This safety buffer is required when considering if a person will be able to make their mortgage repayments.READ MORE: 'Not on my wat…
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