A future Coalition government could require the Australian Prudential Regulation Authority to weaken mortgage serviceability tests for first home buyers, amid concerns young people are being locked out of the housing market by stringent lending laws.
Opposition spokesman for home ownership Andrew Bragg will on Thursday release the findings of a Coalition-led Senate inquiry into mortgage lending standards, which will call for an overhaul of how banks and the prudential regulator treat prospective first homebuyers.
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Michael Read is the Financial Review's economics correspondent, reporting from the federal press gallery at Parliament House. He was previously an economist at the Reserve Bank of Australia and at UBS. Connect with Michael on Twitter. Email Michael at michael.read@afr.com
