APRA Limits Risky Home Loans, Targets Investors
Update: 2025-11-27
Description
APRA implements new rules to limit risky home loans, aiming to prevent housing-related vulnerabilities and address high household debt. Banks can only use 20% of lending capital for high-risk loans, with a debt-to-income ratio limit. This move is seen as a proactive step to lower risk, not a sudden stop to property price increases. APRA also acknowledges strong investor activity but hasnt seen widespread signs of housing vulnerabilities or decline in lending standards among investors.
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