APRA’s decision on residential mortgage lending guidelines and successful passage of the Morrison Government’s personal income tax cuts package will provide a welcome shot of confidence for the property sector at a critical time for the Australian economy.
The Property Council of Australia has welcomed APRA’s decision to remove the 7 per cent interest rate buffer for residential mortgage lending.
“This is a sensible decision that reflects the reality of the current interest rate environment and housing market conditions,” said Ken Morrison, Chief Executive of the Property Council.
“This measure was put in place almost five years ago at the height of the residential price boom. As market conditions change, so should the regulatory guidance,” Mr Morrison said.
“Tighter credit for housing lending has impacted demand, which in turn has affected investment and jobs in the residential housing sector – one of the big drivers of the Australian economy.
“A competitive and well-functioning credit market, subject to prudent regulatory oversight, will help more Australians buy or invest in property, improving housing supply and affordability and support jobs and economic growth.
“The newly legislated personal income tax cuts will add an important stimulus to consumers and businesses at this important time in the economic cycle.
“Today’s announcement by APRA, and passage of the big personal income tax cuts add to the positive news for the property industry, which is good for jobs, investment and housing supply for our growing nation,” Mr Morrison said.