NAB backs higher mortgage buffers to avoid housing crisis

James Frost and James Eyers

Nov 9, 2021 – 5.52pm

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National Australia Bank CEO Ross McEwan says another increase in the loan buffer for borrowers by the prudential regulator would be the most effective way of heading off a New Zealand-style rising house price crisis, with fixed-interest rate rises by banks unlikely to do the job.

“We cannot see another 20 per cent house price growth over the next 12 months. We cannot afford to have that happen in the Australian marketplace,” Mr McEwan said on Tuesday after delivering the bank’s full-year result.

James Frost writes about banking, funds management and superannuation. Based in Melbourne, James has been reporting on specialist business and finance topics for 15 years.

James Eyers writes on banking, payments and fintech. He is a former legal and investment banking editor at the AFR, has degrees in commerce and law from UNSW, and is co-author of Buy now, pay later: The extraordinary story of Afterpay