APRA crackdown on lending could deepen housing divide: Firstmac

Liam WalshReporter

Dec 21, 2021 – 5.56pm

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A potential lending crackdown to deflate the housing bubble would exacerbate the gap between those who can and cannot afford property, according to $14 billion lender Firstmac.

The Australian Prudential Regulation Authority, which oversees banks, has flagged the possibility of introducing a debt-to-income ratio test in lending, potentially limiting borrowers with a debt-to-income ratio greater than four times or six times.

Liam Walsh writes on investigations and companies with The Australian Financial Review. He has won multiple media awards, worked in Japan and is now based in Brisbane.