Home loan criteria tightened says bank regulator APRA
Australia's bank regulator APRA has found a significant tightening of home lending criteria since it began a crackdown in late 2014.
Tighter criteria mean that more marginal borrowers are increasingly likely to have their loan applications rejected, while those who do get finance will generally find they are offered a smaller maximum loan size.
A fresh survey into the treatment of four hypothetical borrowers shows that the average maximum amount that an owner-occupier could borrow fell by 6 per cent.
With APRA particularly concerned about the previously rapid growth in investor home loans, and introducing a speed limit on growth in that area, the maximum average loan to investors dropped 12 per cent.
