The Australian Prudential Regulation Authority (APAR) officially announced today that the annual growth rate of investment-based mortgages should not exceed 10%.

The Prudential Regulatory Authority issued a statement this morning saying that in view of the improvement in the loan situation in the past two years, the “annual increase in investment-based mortgage loans that cannot exceed 10% in the year” introduced in December 2014 is no longer suitable for today’s market environment. .

The Prudential Regulation Authority stated in its statement: “Accredited Deposit Absorption Agencies (ADIs) have taken corresponding measures to raise the loan standard and enhance the ability of capital to resist risks. We will send a letter today to ADIs recommending that they cancel the increase in investment-type mortgages. Cap.”

The latest data released by the Reserve Bank of Australia shows that in February this year, Australia’s investment-oriented housing credit increased by 2.8%. Before the implementation of the year-on-year growth rate of investment-oriented mortgages, this figure reached 10.8%.

Wayne Byres, Chairman of the Prudential Regulation Authority, has continued to face market risks and some regulatory measures need to be further strengthened.

He said: “The assessment of the lender’s expenditure and debt needs to be strengthened, loan supervision still cannot be relaxed, and the Prudential Regulation Authority also hopes to get the commitment of the ADIs board of directors in this regard.”

The Prudential Regulation Authority also stated that independent credit institutions must prove that their loan growth has been less than 10% in the past six months. Otherwise, the previous increase ceiling system will continue. In addition, those institutions that do not meet the guidelines of the Prudential Regulation Authority must also abide by the previous increase ceiling system.

In addition, they hope that credit agencies can each issue internal regulations to restrict lenders with high debt levels and low income to continue to borrow. “We hope that credit institutions can take into account the total amount of loans made by customers, not just whether they meet the loan standards.”

Byres said: “The Prudential Regulation Authority will still pay close attention to the changes in the credit market, and the provisions for interest-only loans will continue to be implemented. We will also negotiate with the Financial Supervisory Commission to consider whether we need to further revise the relevant regulations.”