Published: May 22, 2019
Population growth in Melbourne could support quicker turnaround than Sydney, analyst says
Analysts believe soft property markets, particularly in Sydney and Melbourne , may bottom out next year, amid the banking regulator loosening a constraint on mortgage credit and an expected official cash-rate cut.
The Australian Prudential Regulation Authority proposed on Tuesday that banks should change the way they assess customers’ ability to meet their mortgage repayments in a move that would let people borrow more. Since 2014 customers have been required to meet an interest rate minimum floor of 7% but now lenders will be allowed to set their own benchmark, so long as there is a 2.5% buffer above the mortgage rate.
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