Banking Regulator To Cap Home Loans Amid Housing Boom | The Business | Abc News

The banking regulator will impose new restrictions on home loans from early next year to limit the number of "high-risk" large loans being issued to customers. APRA is ordering the institutions under its supervision to limit high debt-to-income loans to 20 per cent of all new loans approved. The regulator says the 20 per cent cap will apply separately to investor and owner-occupier loans, to avoid the risk of investors "crowding out" owner-occupier buyers. A high debt-to-income loan is defined as one where the total amount borrowed is more than six times the borrower's annual household income. The new cap on high debt-to-income loans takes effect on February 1. Alicia Barry spoke with APRA chair, John Lonsdale, in his first TV interview. He says; "we're particularly targeting high debt to income lending, if we're successful at that, we'd expect good quality lending to keep happening through the economy and I think that's good for borrowers of all sorts."
#ABCBusiness
Subscribe: http://ab.co/1svxLVE
Read more here: https://www.abc.net.au/news/2025-11-27/banking-regulator-apra-imposes-home-loan-caps/106058604

ABC NEWS provides around the clock coverage of news events as they break in Australia and abroad. It's news when you want it, from Australia's most trusted news organisation.

For more from ABC NEWS, click here: https://ab.co/2kxYCZY
Watch more ABC NEWS content ad-free on ABC iview: https://ab.co/2OB7Mk1

Go deeper on our ABC NEWS In-depth channel: https://ab.co/2lNeBn2
Like ABC NEWS on Facebook: http://facebook.com/abcnews.au
Follow ABC NEWS on Instagram: http://instagram.com/abcnews_au
Follow ABC NEWS on X (Twitter): http://twitter.com/abcnews

Note: In most cases, our captions are auto-generated.

#ABCNEWS #ABCNEWSAustralia