• APRA decision a win for WA home buyers

    New


    REIWA has welcomed the decision by the Australian Prudential Regulation Authority (APRA) to remove the cap on interest-only loans for residential property.

    REIWA Deputy President Lisa Joyce said loosening the restrictions was a win for Western Australian home buyers and investors.

    “When APRA originally introduced these tighter lending rules, the decision was made with the red-hot east coast markets, like Sydney and Melbourne, in mind. While this has had the desired effect of cooling house prices in those markets, it only served to further dampen the WA market.

    “Now that these restrictions have been loosened, more West Australians will now be able to access interest-only loans, making home ownership and property investment more affordable, which should help stimulate our local property market as it starts to recover,” Ms Joyce said.

    Following the negative impact these national rules have had on the WA market, REIWA calls on APRA to ensure WA is not further burdened by its national approach.

    “We would like to see APRA move away from a blanket approach to introducing policies and instead consider the diversity of our national market by introducing state-by-state policies targeted at rectifying the issues affecting each individual state or territory,” Ms Joyce said.

    These changes will come into effect on 1 January 2019.