Growth in housing debt has been outpacing the slow growth in household income for some time. To address the medium-term risks associated with high and rising household indebtedness, APRA has introduced a number of supervisory measures. Credit standards have been tightened in a way that has reduced the risk profile of borrowers.
The low level of interest rates is continuing to support the Australian economy. Taking account of the available information, the Reserve Bank Board judged that holding the stance of monetary policy unchanged at their most recent meeting would be consistent with sustainable growth in the economy and achieving their inflation target over time.
Regulatory changes have significantly changed how Banks assess your ability to service which in turn will impact your overall borrowing power. Should you have intentions to enter the property market sound professional advice is a must. We are here to help.