New crackdown on ‘toxic’ loans

  • THE financial regulator is cracking down on interest-only mortgages in a bid to cool down soaring house prices.

The Australian Prudential Regulation Authority wrote to the banks today to announce new measures to “reinforce sound residential mortgage lending practices in an environment of heightened risks”.

READ MORE VIA NEWS.COM.AU

Around 40 per cent of residential mortgages are interest-only. Picture: Brianne Makin

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