APRA Tightens Home Loan Borrowing | Kanebridge News
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APRA Tightens Home Loan Borrowing

The move is said to counter rising risks in home lending.

By Terry Christodoulou
Wed, Oct 6, 2021Grey Clock < 1 min

The Australian Prudential Regulation Authority (APRA) has today increased the minimum interest rate buffer it expects banks to use when assessing the serviceability of home loan applications.

The prudential regulator says the move will reduce the maximum borrowing capacity for the typical borrower by around 5%.

APRA has written to banks telling them to increase the buffer by 0.5% from 2.5% to 3%.

The buffer is added to the interest rate of the loan and borrowers are assessed on whether they can repay with the buffer to guard against higher interest rates in the future.

APRA Chair Wayne Byres said this is a targeted and judicious action.

“In taking action, APRA is focused on ensuring the financial system remains safe, and that banks are lending to borrowers who can afford the level of debt they are taking on – both today and into the future,” said Mr Byres.

It comes as housing credit growth is increasingly being driven by lending to more marginal and highly indebted borrowers. In the June quarter of 2021 more than 20% of new lending was to borrowers that had loaned more than 6 times their pre-tax income – a figure that is high by historical and international standards.

“With the economy expected to bounce back as lockdowns begin to be lifted around the country, the balance of risks is such that stronger serviceability standards are warranted,” Mr Byres said.

APRA decided to not use an interest rate floor as it said moving the floor would have a larger impact on owner-occupiers. The regulator had previously used a set floor until 2019 when it handed responsibility back to banks.

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The waterfront residence is one of Port Stephens’ finest homes.

By Kanebridge News
Fri, Aug 12, 2022 2 min

In the coastal township of Salamander Bay — nearby to Port Stephens — comes a unique home crafted to take full advantage of unbroken ocean vistas across three levels.

With one-of-a-kind flair, the stunning 5-bedroom, 3-bathroom, 3-car garage home of 52 Randall Drive Salamander Bay is nestled on a private 577sqm plot, optimised through intelligent design to take advantage of the Port Stephens landscape and lifestyle.

Within the home sees the typically coastal textures of natural oak floor and timber feature walls take hold while stone and tiled adornments add layers of luxury.

The open plan living, kitchen and dining areas incorporate a fireplace and near floor-to-ceiling glass that opens to create a seamless indoor-to-outdoor dining and entertaining space on the home’s top floor.

The heart of this area is the kitchen, centred around a marble-topped island, state-of-the-art European appliances and an attached bar area, with built-in refrigeration, accompanied by a butler’s pantry.

Also here comes a grand outdoor spa, central to the balcony, while another outdoor entertaining area with a pizza oven is found on the middle floor.

Downstairs once again comes a second living space replete with the perfect wine cellar — cooled by the natural rock foundation of the home — offering an array of entertaining options

Of the home’s accommodation comes a private and luxurious master retreat with expansive ocean views, a walk-in wardrobe and an ensuite, here, speckled with grey terrazzo tiling and timber joinery vanities.  A further four bedrooms are found throughout the home along with two family bathrooms rounding out the offering.

Less than a five-minute walk from nearby amenities of shops, restaurants, cafes and beaches the home offers the best of the Port Stephens area.

The listing is with PRD Port Stephens’ Dane Queenan (+61 412 351 819) and Erin Sharp (+61 499 912 311) and is heading to auction; prd.com.au