July 14, 2015
The Australian Prudential Regulation Authority (APRA) oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, private health insurance, friendly societies and most members of the superannuation industry.
APRA's mission: to establish and enforce prudential standards and practices designed to ensure that, under all reasonable circumstances, financial promises made by institutions we supervise are met within a stable, efficient and competitive financial system.
With interest rates the lowest they have ever been, coupled with lowish unemployment and housing shortages in Sydney and Melbourne the investor market is driving property values to record levels. APRA as the industry regulator is wanting the heat reduced in these markets by ensuring the banks have more focus on Owner Occupied home loans. This in turn puts pressure on the banks to make Investor home loans either less attractive or harder to obtain.
Their reasoning I assume, must be along the lines of 'if there are less investors in the market, the genuine home owner will have a better chance of obtain a home, and by that reasoning if there is less buyers in the market then the prices should stabilise'. Will this happen, only time will tell so watch this space.
If you have any questions about this or any other home loan related matters please do not hesitate to contact me (alan) on 04322 81837