Major crackdown on home loans 'in weeks'

www.dailytelegraph.com.au
2 min read
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<p>More than one in five home buyers are borrowing more than six times their income, prompting the Treasurer to consider stepping in to crack down on home loans. </p>
A major crackdown for home loans is on the cards to stop a growing problem caused by historically low interest rates and surging property prices.

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More than one in five home buyers are borrowing more than six times their income, prompting the Treasurer to consider stepping in to crack down on home loans.

Josh Frydenberg has met with financial regulators to discuss the hot housing market, and given them the go ahead to consider clamping down on high-debt home loans in order to minimise risks caused by historically low interest rates and surging property prices.

Regulators could announce within the coming weeks or months new limits to high-debt loans, as concerns about the amount of debt being taken on by lenders increases.

In the June quarter, the number of new residential mortgages where debt was at least six times greater than income jumped to 21.9 per cent, up from 16 per cent in the…
Ellen Ransley
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