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Australia's Banking Regulator Faces Pressure to Tighten Loans

Published 5 days, 18 hours ago
Description

Australias banking regulator faces pressure to rein in property investor loans, as surging investor lending drives up home prices and squeezes out first-time buyers. Despite a slight dip in national dwelling values, investor lending has surged, leading to recent interest rate hikes. New rules limiting loans to six times income for investors and owner-occupiers have been implemented, but experts argue stronger curbs could have prevented rate increases. Meanwhile, demand for cheaper homes remains high, with investors, first-timers, and upsizers competing fiercely.

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