Via the AFR:
Property investors who are “materially dependent” on income generated from renting their property face steep increases to interest rates in the coming years, as banks respond to global regulatory changes that will require them to hold higher levels of capital against such loans.
An alarming report published by JPMorgan on Wednesday says regulatory reforms known as Basel 4 will require banks to hold up to five times the amount of capital against investor loans materially dependent on rental income to repay the loan.
