APRA DECISION ON INTEREST-ONLY LENDING

The Property Council of Australia has welcomed APRA’s announcement today that it will remove its supervisory benchmark on interest-only residential mortgages.

“This is a sensible step by APRA that supports the strength and stability of our financial system which is the bedrock of the property industry,” said Ken Morrison, Chief Executive of the Property Council.

“As APRA has noted, it was introduced as a temporary measure in March 2017 to moderate higher risk lending and support a strengthening of lending standards.

“The availability of finance is vital to the sustainability and growth our property sector which employs 1.4 million Australians and contributes 13 per cent of our GDP.

“At a time when some of our largest residential property markets are cooling, APRA’s announcement provides welcome certainty and direction.

The ANZ/Property Council industry confidence survey for the December 2018 quarter found that expectations around debt finance availability over the next 12 months had fallen to record low levels.

“Today’s announcement by APRA is timely, measured and underpins the importance of sound policy and governance for our financial system,” Mr Morrison said.

Media contact: Matt Francis | M 0467 777 220  | E mfrancis@propertycouncil.com.au